Exam 9: Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

Christi was told by the store's produce manager that the oranges were of a variety that had a extremely high level of vitamin C. So she bought a case for her health club's garden party. At the party, the guests enjoyed eating up all the oranges. When Christi was next in the store, the manager corrected his prior statement, saying the oranges were of a different variety than what he had thought. Does Christi have a legal claim for rescission?

Damages are not generally awarded in cases of innocent misrepresentation, however, "out- of- pocket" expenses might be awarded. These are referred to as

With the issue of undue influence, what must the victim do to shift the burden of proof to the dominant party?

Cindy bought a car from Ben. Before she bought the car, her mechanic inspected it and told her it had a new engine. Cindy has now owned the car for two months, and has discovered that the engine is not new and will need to be replaced soon. Both Ben and the mechanic though that the engine was new. What remedies would Cindy most likely be entitled to?

James has an old car for sale. Betty views the car and in response to a question about the age of the car, James replies, "I think it is a 1929 Ford." Betty purchases the car but the written contract makes no mention of the year of the car. Actually the car is a 1932 Ford. What remedy does Betty have? What defenses are available to James?

Kevin was desperate to save his business records and equipment from the rising flood waters. A stranger with a large truck agreed to help if Kevin would give him his choice of equipment for payment. Kevin had no time to argue, so he agreed. After the flood, Kevin demanded everything back. The stranger refused to return a new laptop computer. On what legal grounds can Kevin get his computer back?

When describing the car he had for sale, Jack told Jill it had genuine cowhide seat covers. The car in fact had imitation leather seat covers. Jill decided to buy the car, in part because she liked cowhide seat covers. The written contract made no mention of the type of seat covers. When Jill took possession of the car she discovered that the seat covers were not cowhide and asked you the following questions: a. What is the name of all potential causes of action that Jill has against Jack? b. What remedy or remedies can Jill seek? c. What elements must Jill be able to prove in order to be successful? Answer the above questions providing reasons for your answers. Express an opinion about the probable outcome of Jill's action.

The domination of one party over the mind of another to such a degree as to deprive the latter of the will to make an independent decision is

Caveat emptor only applies to the

Jaime has agreed to buy Steve's 4x4 truck. When Steve used the truck last, it ran quite well, so he says "it is in good condition". Unfortunately, the truck sat in the humid weather for some time and the head gasket had rotted away to where the truck wouldn't run. What legally should Jaime do?

You innocently have made some misstatements that others are relying on. Legally speaking, you can change your situation from innocent misrepresentation into one of fraudulent or negligent misrepresentation by

Damages are not available as a remedy for innocent misrepresentation.

Mr. Chessman, an elderly man, is asking a prominent businessman, Mr. Ross, to sign a contract for the restoration of a downtown tenement which Mr. Ross owns and Mr. Chessman lives in. During the ensuing discussion, Mr. Chessman states ". and if you don't sign your children may suffer". Mr. Ross reluctantly signs. Will this contract be enforceable against Mr. Ross? Explain.

Brandy wants to buy a car. Her credit rating will not allow her to borrow from a bank, so she goes to a private lender. This lender asks her to sign a contract that has lots of restrictive terms, which he rushes by without explaining or allowing her to read. What is the issue?

Terri asked to see the #378 Silver Streak tomato seeds listed in the catalog. The clerk pointed to a large bag in the corner and Terri commenced to weigh out the two pounds she wanted. Several weeks later, she discovered the plants were the wrong variety. Does she have a legal claim in misrepresentation?

You are going to lend money to a corporation owned by Mr. X. You are requiring that Mr. X and his wife, Ms. Y, sign personal guarantees agreeing to be responsible in case of default. Why might you be concerned about your ability to enforce the guarantee against Ms. Y, and how should you protect your position?

A person seeking to avoid a contract for undue influence must do so promptly.

Regarding insurance contracts, utmost good faith is important because

In the sale of goods, usually the seller guarantees clear title to the buyer. With land, why is it that the seller need not guarantee clear title to the buyer?

Misrepresentation in contract law