Exam 13: Genuineness of Assent and Undue Influence

Melissa Harrison, a realtor, sells a house to the Smiths.Before the sale is finalized, Mr.Smith asks Melissa for details of repairs the house has undergone over the years.Melissa gives him details of minor repairs but hides all documents regarding a major plumbing defect that was repaired last year.Three months after the Smiths moved in, the defect reappeared that caused the first floor to flood, damaging their expensive carpet and furniture.Melissa is liable for which of the following frauds?

________ is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.

Jeffrey became a victim of fraud when he entered a pyramid scheme which turned out to be a scam.In order to claim damages, Jeffrey has to prove which of the following?

Contracts involving fraud in inducement are not voidable.

A misrepresentation is considered fraud even if it is made without intent to deceive another party.

When a mutual mistake of value occurs, the contract remains enforceable by either party.

If a seller does not disclose legal disputes involving the property being sold, he or she is liable for silence as misrepresentation.

During the sale of a house, if the seller does not inform the buyer about construction flaws of the house despite the buyer's enquiry, the seller is liable for fraud by concealment.

Mistakes in clerical or mathematical errors which are not the result of gross negligence are considered unilateral mistakes.

A material fact is a fact that is irrelevant to the subject matter of a contract but pertains to the conduct of the parties.

A misrepresentation of law is actionable as fraud as the innocent party cannot know every legal detail that applies to the situation.

Describe a case that involves fraud in the inducement.

Which of the following occurs when one party intentionally hides a material fact from another party?

In most cases of unilateral mistake, the mistaken party is permitted to rescind the contract.

Which of the following constitute a mutual mistake of a material fact?

When Stella Finman got to know that she was terminally ill, she drafted a will leaving all her property to her son.During her period of illness, Stella was financially and emotionally supported by her lawyer as her son was mostly away.When the will was read upon her death, it said that her lawyer would get a 20 percent stake in Finman Corp., a company Stella owned.Upon investigation, it was revealed that Stella's lawyer took advantage of Stella's weakness and persuaded her to change the contractual terms.This is an instance of ________.

Duress is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.

An ambiguity in a contract may constitute a mutual mistake of a material fact.

If an innocent misrepresentation has been made, the aggrieved party may sue for damages.

Lucy wants a divorce from her husband but he wants to stay in the marriage.She threatens to bring a false criminal lawsuit claiming physical abuse from him if he doesn't sign the divorce papers.This is an instance of ________.