Question 1

Explain undue influence with an example.

Accepted Answer

Undue influence occurs when one person (

Question 2

What is physical duress?

Accepted Answer

A) physically damaging the contract documents 
B) signing a contract without the knowledge that it represents fraudulent information 
C) threatening to physically harm someone if he or she does not sign a contract 
D) persuading a person to rescind a valid contract by misrepresenting the facts 
A) physically damaging the contract documents 
B) signing a contract without the knowledge that it represents fraudulent information 
C) threatening to physically harm someone if he or she does not sign a contract 
D) persuading a person to rescind a valid contract by misrepresenting the facts

Question 3

Contracts involving fraud in the inception are void.

Accepted Answer

A) True 
 B)False

Question 4

Alice offers Richard a chance to work in her affiliate marketing program which, she claims, will make him a millionaire in three months.Richard makes the "mandatory investment" of $12, 000 and becomes an affiliate.Soon, he realizes that such a program does not exist and that Alice has disappeared with the money.This is an instance of ________.

Accepted Answer

A) misrepresentation of law 
B) fraud in the factum 
C) fraud in inducement 
D) duress 
A) misrepresentation of law 
B) fraud in the factum 
C) fraud in inducement 
D) duress

Question 5

________ is a situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract.

Accepted Answer

A) Duress 
B) Undue influence 
C) Fraud 
D) Scienter 
A) Duress 
B) Undue influence 
C) Fraud 
D) Scienter

Question 6

What should be shown to prove fraud?

Accepted Answer

To prove fraud, the following elements m

Question 7

For a situation to be considered "undue influence, " the persuasion by the wrongdoer must overcome the free will of the innocent party.

Accepted Answer

A) True 
 B)False

Question 8

Millie receives a parcel from her aunt in Indonesia.The delivery man asks her to sign an authorization document to receive the parcel.Millie signs without reading the document, as she is in a hurry.However, on the other side of the document are contract terms that transfer all of Millie's property to the delivery man.This is an instance of ________.

Accepted Answer

A) fraud in the inception 
B) fraud in the inducement 
C) fraud by concealment 
D) misrepresentation of law 
A) fraud in the inception 
B) fraud in the inducement 
C) fraud by concealment 
D) misrepresentation of law

Question 9

Which of the following constitutes duress?

Accepted Answer

A) an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation 
B) a situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract 
C) a threat to commit extortion unless someone enters into a contract 
D) the knowledge that a representation is false or that it was made without sufficient knowledge of the truth 
A) an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation 
B) a situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract 
C) a threat to commit extortion unless someone enters into a contract 
D) the knowledge that a representation is false or that it was made without sufficient knowledge of the truth

Question 10

Physical duress occurs when there is physical harm to the contractual document, such as complete or partial destruction or manipulation of content.

Accepted Answer

A) True 
 B)False

Question 11

A threat to bring a civil lawsuit unless someone enters into a contract constitutes duress.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of a unilateral mistake?

Accepted Answer

A) Only one mistake or ambiguity is present in the subject matter of the entire contract. 
B) Out of several contracts drafted simultaneously between two parties, one has a mistake in its subject matter that does not concern the other contracts. 
C) Only one party is mistaken about a material fact regarding the subject matter of a contract. 
D) A single mistake about a material fact in the subject matter of a contract appears several times in the contract. 
A) Only one mistake or ambiguity is present in the subject matter of the entire contract. 
B) Out of several contracts drafted simultaneously between two parties, one has a mistake in its subject matter that does not concern the other contracts. 
C) Only one party is mistaken about a material fact regarding the subject matter of a contract. 
D) A single mistake about a material fact in the subject matter of a contract appears several times in the contract.

Question 13

Which of the following is true of duress?

Accepted Answer

A) It is liable for fraud. 
B) A threat should involve physical harm for it to be actionable as duress. 
C) It is a threat issued to make another person sign a contract. 
D) Intoxicating a person to sign a contract is considered duress. 
A) It is liable for fraud. 
B) A threat should involve physical harm for it to be actionable as duress. 
C) It is a threat issued to make another person sign a contract. 
D) Intoxicating a person to sign a contract is considered duress.

Question 14

Which of the following constitutes duress?

Accepted Answer

A) a plaintiff threatening the defendant that he will not drop the lawsuit until the defendant pays him a certain amount of money 
B) a teacher threatening a student that he will be expelled if he is found with cigarettes again 
C) a wife threatening to commit suicide if her abusive husband does not stop beating her 
D) a father using his dominant and fiduciary position to unduly influence his son into committing a crime 
A) a plaintiff threatening the defendant that he will not drop the lawsuit until the defendant pays him a certain amount of money 
B) a teacher threatening a student that he will be expelled if he is found with cigarettes again 
C) a wife threatening to commit suicide if her abusive husband does not stop beating her 
D) a father using his dominant and fiduciary position to unduly influence his son into committing a crime

Question 15

To prove fraud, which of the following elements must be shown?

Accepted Answer

A) The innocent party knew the wrongdoer. 
B) The innocent party was the one who detected fraud. 
C) The wrongdoer assumed a false identity. 
D) The wrongdoer intended to deceive the innocent party. 
A) The innocent party knew the wrongdoer. 
B) The innocent party was the one who detected fraud. 
C) The wrongdoer assumed a false identity. 
D) The wrongdoer intended to deceive the innocent party.

Question 16

A misrepresentation of a material fact is actionable as fraud only if it occurs by words.

Accepted Answer

A) True 
 B)False

Question 17

Fraud in inducement occurs when the party does not know the terms of the contract.

Accepted Answer

A) True 
 B)False

Question 18

What is scienter?

Accepted Answer

A) knowledge that a representation is false 
B) undue influence used on a party to a contract 
C) another term for duress 
D) damages given to a victim of fraud 
A) knowledge that a representation is false 
B) undue influence used on a party to a contract 
C) another term for duress 
D) damages given to a victim of fraud

Question 19

________ occurs when the party knows what he or she is signing but has been fraudulently been led into the contract.

Accepted Answer

A) Fraud in the factum 
B) Fraud in the inducement 
C) Fraud by concealment 
D) Misrepresentation of law 
A) Fraud in the factum 
B) Fraud in the inducement 
C) Fraud by concealment 
D) Misrepresentation of law

Question 20

Unilateral mistake is a mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract.

Accepted Answer

A) True 
 B)False

Exam 13: Genuineness of Assent and Undue Influence

Explain undue influence with an example.

What is physical duress?

Contracts involving fraud in the inception are void.

________ is a situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract.

What should be shown to prove fraud?

For a situation to be considered "undue influence, " the persuasion by the wrongdoer must overcome the free will of the innocent party.

Which of the following constitutes duress?

Physical duress occurs when there is physical harm to the contractual document, such as complete or partial destruction or manipulation of content.

A threat to bring a civil lawsuit unless someone enters into a contract constitutes duress.

Which of the following is true of a unilateral mistake?

Which of the following is true of duress?

Which of the following constitutes duress?

To prove fraud, which of the following elements must be shown?

A misrepresentation of a material fact is actionable as fraud only if it occurs by words.

Fraud in inducement occurs when the party does not know the terms of the contract.

What is scienter?

________ occurs when the party knows what he or she is signing but has been fraudulently been led into the contract.

Unilateral mistake is a mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract.

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