Question 1

A defense to the enforcement of a contract is that the assent of one or both of the parties to the contract was not genuine or real.

Accepted Answer

A) True 
 B)False

Question 2

In general,the parol evidence rule:

Accepted Answer

A)  describes the proof requirements for ending a prison sentence early. 
B)  requires certain contracts to be in writing. 
C)  determines damages that can be awarded for certain types of contracts. 
D)  prevents courts from hearing certain evidence in connection with a valid written contract. 
E)  prevents parties from changing contracts once a writing has been signed. 
A)  describes the proof requirements for ending a prison sentence early. 
B)  requires certain contracts to be in writing. 
C)  determines damages that can be awarded for certain types of contracts. 
D)  prevents courts from hearing certain evidence in connection with a valid written contract. 
E)  prevents parties from changing contracts once a writing has been signed.

Question 3

John and Alicia are neighbors in Cleveland.Alicia has been transferred in her job and is moving to Portland.She and John enter into a contract for John to drive her car to Portland for $200.John believed that she meant Portland,Maine when in fact she intended that the car be driven to Portland,Oregon.There was no reason for John to know which city she wanted the car shipped to.Which is true in this situation?

Accepted Answer

A)  John can rescind this contract due to mutual mistake, but Alicia cannot. 
B)  This is a mutual mistake that would allow either party to rescind the contract. 
C)  Because each city is correctly called Portland, the only mistake relates to the value of delivering the car to the proper city, and neither party can rescind. 
D)  John can rescind this contract due to unilateral mistake, but only if Alicia knew that John had the wrong Portland in mind. 
E)  John can rescind the contract due to mutual mistake, but only if he can establish that Alicia intentionally misled him. 
A)  John can rescind this contract due to mutual mistake, but Alicia cannot. 
B)  This is a mutual mistake that would allow either party to rescind the contract. 
C)  Because each city is correctly called Portland, the only mistake relates to the value of delivering the car to the proper city, and neither party can rescind. 
D)  John can rescind this contract due to unilateral mistake, but only if Alicia knew that John had the wrong Portland in mind. 
E)  John can rescind the contract due to mutual mistake, but only if he can establish that Alicia intentionally misled him.

Question 4

Why should prenuptial agreements be enforceable only if they are in writing? Should they be enforced at all?

Accepted Answer

A prenuptial agreement usually becomes i

Question 5

One night at a restaurant,Mark and Mary wrote up an agreement on a couple of napkins about a construction project whereby Mark would build a room addition to Mary's house.Mark said he would do this in exchange for Mary agreeing to transfer an empty piece of land that she owned to Mark.It took two napkins because the agreement would not fit on a single napkin.Mark signed one of the napkins,but Mary signed neither.The contract price was $30,000.A few days later Mark saw the plans,which were more complex than he expected.Discuss the enforceability of this contract.

Accepted Answer

A writing is required because the contra

Question 6

To be sufficient under the Statute of Frauds,a writing must be signed by both parties to the contract.

Accepted Answer

A) True 
 B)False

Question 7

Fraud in the inception is also referred to as fraud in the ________.

Accepted Answer

A)  factum 
B)  inducement 
C)  concealment 
D)  essence 
E)  totality of the circumstances 
A)  factum 
B)  inducement 
C)  concealment 
D)  essence 
E)  totality of the circumstances

Question 8

To prove fraud,the following elements must be shown: 1)The wrongdoer made a false representation of a material fact; 2)The wrongdoer intended to deceive the innocent party; 3)The innocent party unjustifiably relied on the misrepresentation; and 4)The innocent party was injured.

Accepted Answer

A) True 
 B)False

Question 9

It is possible to commit a fraud by remaining silent and not saying anything.

Accepted Answer

A) True 
 B)False

Question 10

Jenny agreed to buy Darren's car for $12,000.Their written agreement mentioned the car,the car's vehicle identification number and the price,but little more.Jenny claims that before they signed the agreement Darren said that he would include a bike rack that was in his garage when Jenny first looked at the car.Jenny also claims that after they signed the agreement but before she picked up the car Darren agreed to give the car a thorough cleaning and hand wax for an extra $50.If Jenny were to sue Darren,which of these oral matters could she introduce into evidence under the parol evidence rule?

Accepted Answer

A)  the agreement about the bike rack 
B)  the agreement about waxing the car 
C)  the agreement about the bike rack and the agreement about waxing the car 
D)  neither the agreement about the bike rack nor the agreement about waxing the car 
E)  the agreement about the bike rack, but only if she could establish that Darren was the one who wrote the agreement 
A)  the agreement about the bike rack 
B)  the agreement about waxing the car 
C)  the agreement about the bike rack and the agreement about waxing the car 
D)  neither the agreement about the bike rack nor the agreement about waxing the car 
E)  the agreement about the bike rack, but only if she could establish that Darren was the one who wrote the agreement

Question 11

Bruno owns a French Poodle that he advertises for sale.The dog has a history of viciously biting three local neighborhood kids without reason,as well as each of Bruno's three kids.Marge is looking for a dog to be a playmate for her children.When she comes to Bruno's house to see the dog,she sees it playing with Bruno's kids and doesn't ask about the dog's past behavior.She tells Bruno that she's looking for a dog for her kids and Bruno says nothing.Five minutes after the dog enters her house,it bites one of Marge's kids.Which of the following is the most accurate statement regarding Bruno's nondisclosure of his dog's vicious propensities?

Accepted Answer

A)  Bruno has not committed a fraud, because silence cannot be considered a fraud. 
B)  Bruno has not committed a fraud, because Marge did not specifically ask if the dog bites. 
C)  Bruno has committed an innocent misrepresentation, because he did not state a lie but only withheld all of the truth. 
D)  Bruno has committed fraud, because he withheld a material fact. 
E)  This cannot be fraud or a misrepresentation, because no one can predict what a dog will do, so Bruno should not be responsible. 
A)  Bruno has not committed a fraud, because silence cannot be considered a fraud. 
B)  Bruno has not committed a fraud, because Marge did not specifically ask if the dog bites. 
C)  Bruno has committed an innocent misrepresentation, because he did not state a lie but only withheld all of the truth. 
D)  Bruno has committed fraud, because he withheld a material fact. 
E)  This cannot be fraud or a misrepresentation, because no one can predict what a dog will do, so Bruno should not be responsible.

Question 12

A party may rescind a contract if there has been a ________ mistake of a past or existing ________ fact.

Accepted Answer

A)  unilateral; demonstrable 
B)  unilateral; material 
C)  mutual; demonstrable 
D)  mutual; material 
E)  multilateral; demonstrable 
A)  unilateral; demonstrable 
B)  unilateral; material 
C)  mutual; demonstrable 
D)  mutual; material 
E)  multilateral; demonstrable

Question 13

If a contract is not enforced on the basis of the Statute of Frauds,the court has based its decision on the presence of which type of fraud?

Accepted Answer

A)  fraud in the inducement 
B)  fraud in the inception 
C)  fraud by concealment 
D)  The court's decision could have been based on the presence of fraud in the inducement, fraud in the inception, or fraud by concealment. 
E)  The court's decision could not have been based on the presence of any of these types of fraud. 
A)  fraud in the inducement 
B)  fraud in the inception 
C)  fraud by concealment 
D)  The court's decision could have been based on the presence of fraud in the inducement, fraud in the inception, or fraud by concealment. 
E)  The court's decision could not have been based on the presence of any of these types of fraud.

Question 14

Fraud in the inducement is also known as fraud in the factum.

Accepted Answer

A) True 
 B)False

Question 15

What does "incorporation by reference" do in the context of contract law?

Accepted Answer

A)  It identifies the parties to a contract. 
B)  It dictates that the court apply equitable principles, rather than legal principles, to resolution of any dispute arising between the parties. 
C)  It makes separate writings part of a contract's terms. 
D)  It makes the Statute of Frauds inapplicable to the contract. 
E)  nothing as far as the Statute of Frauds is concerned, because incorporation cannot be used to satisfy the Statute of Frauds 
A)  It identifies the parties to a contract. 
B)  It dictates that the court apply equitable principles, rather than legal principles, to resolution of any dispute arising between the parties. 
C)  It makes separate writings part of a contract's terms. 
D)  It makes the Statute of Frauds inapplicable to the contract. 
E)  nothing as far as the Statute of Frauds is concerned, because incorporation cannot be used to satisfy the Statute of Frauds

Question 16

Unilateral mistakes occur when only one party is mistaken about a material fact regarding the subject matter of the contract.

Accepted Answer

A) True 
 B)False

Question 17

John is a successful salesperson,but his brother has always had difficulty paying his bills.His brother wants to borrow some money from a bank,but the bank will not lend the money unless John will orally guarantee to repay the loan if his brother cannot.John does so.John's guaranty to repay is:

Accepted Answer

A)  enforceable, because in general, guaranty contracts do not need to be in writing. 
B)  unenforceable, because in general, guaranty contracts need to be in writing. 
C)  enforceable, because the main purpose of the loan and the guarantee was to benefit John. 
D)  unenforceable, because his brother did not sign any agreement. 
E)  enforceable only if the bank can show that John had guaranteed debts for the brother before and paid them without a written document being in place. 
A)  enforceable, because in general, guaranty contracts do not need to be in writing. 
B)  unenforceable, because in general, guaranty contracts need to be in writing. 
C)  enforceable, because the main purpose of the loan and the guarantee was to benefit John. 
D)  unenforceable, because his brother did not sign any agreement. 
E)  enforceable only if the bank can show that John had guaranteed debts for the brother before and paid them without a written document being in place.

Question 18

To prove that a person intended to deceive an innocent party,the person making the misrepresentation must have either had knowledge that the representation was false or made it without sufficient knowledge of the truth.This is called ________.

Accepted Answer

A)  primogeniture 
B)  scienter 
C)  debenture 
D)  accenture 
E)  indenture 
A)  primogeniture 
B)  scienter 
C)  debenture 
D)  accenture 
E)  indenture

Question 19

In a guaranty arrangement,the guarantor:

Accepted Answer

A)  promises to pay the debt of another in any circumstance. 
B)  promises to pay the debt of another if that other person does not pay. 
C)  promises to pay the debt of another contingent upon the happening of an external event. 
D)  promises to assume responsibility for the quality of goods. 
E)  promises to collect a debt or debts on behalf of a creditor. 
A)  promises to pay the debt of another in any circumstance. 
B)  promises to pay the debt of another if that other person does not pay. 
C)  promises to pay the debt of another contingent upon the happening of an external event. 
D)  promises to assume responsibility for the quality of goods. 
E)  promises to collect a debt or debts on behalf of a creditor.

Question 20

The law permits rescission of some contracts made in mistake.

Accepted Answer

A) True 
 B)False

Exam 12: Genuineness of Assent and Statute of Frauds

A defense to the enforcement of a contract is that the assent of one or both of the parties to the contract was not genuine or real.

In general,the parol evidence rule:

Why should prenuptial agreements be enforceable only if they are in writing? Should they be enforced at all?

To be sufficient under the Statute of Frauds,a writing must be signed by both parties to the contract.

Fraud in the inception is also referred to as fraud in the ________.

To prove fraud,the following elements must be shown: 1)The wrongdoer made a false representation of a material fact; 2)The wrongdoer intended to deceive the innocent party; 3)The innocent party unjustifiably relied on the misrepresentation; and 4)The innocent party was injured.

It is possible to commit a fraud by remaining silent and not saying anything.

A party may rescind a contract if there has been a ________ mistake of a past or existing ________ fact.

If a contract is not enforced on the basis of the Statute of Frauds,the court has based its decision on the presence of which type of fraud?

Fraud in the inducement is also known as fraud in the factum.

What does "incorporation by reference" do in the context of contract law?

Unilateral mistakes occur when only one party is mistaken about a material fact regarding the subject matter of the contract.

John is a successful salesperson,but his brother has always had difficulty paying his bills.His brother wants to borrow some money from a bank,but the bank will not lend the money unless John will orally guarantee to repay the loan if his brother cannot.John does so.John's guaranty to repay is:

To prove that a person intended to deceive an innocent party,the person making the misrepresentation must have either had knowledge that the representation was false or made it without sufficient knowledge of the truth.This is called ________.

In a guaranty arrangement,the guarantor:

The law permits rescission of some contracts made in mistake.

Legal Heritage and the Information Age

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A party may rescind a contract if there has been a mistake of a past or existing fact.