Exam 11: Conduct Invalidating Assent

For rescission to be available as a remedy for a false statement, a misrepresentation must have been made with scienter.

Fraud in the execution is a fairly common occurrence and involves defrauding a person as to the very nature of the contract.

Which of the following results in a void, rather than voidable, agreement?

Pat told her friends that her car got 35 miles to the gallon in the city when in reality it only got 20 miles per gallon. When Pat decides to sell and one these friends decides to buy the car, Pat is under no duty to tell the correct figure unless asked.

Jill contracts to purchase Kevin's automobile under the belief that she can sell it at a profit to Linda, but after Jill has bought the car, she finds out that Linda isn't interested in buying it. Jill:

Tom tries to sell his Aston-Martin to Victoria for $12,000. Tom tells Victoria, "I paid $12,000 for the car in 1978 and it's worth twice that today." Tom really paid $8,000 for the car in 1978. If Victoria buys the car, basing her decision on Tom's statement, which of the following correctly states the situation?

Physical compulsion and improper threats are the two basic types of duress.

Identify two situations in which silence or nondisclosure constitutes a misrepresentation.

Steven has a typed copy of a contract, which he would like to have Thomas sign. Thomas, who needs glasses to read typing, doesn't want to sign until he has read the document, but Steven convinces Thomas to sign it anyway, because it is a "standard" contract for this type of situation. Is the contract which Thomas signed binding upon him?

In the Lesher v. Strid case, the court held that:

Adam wants to buy a six-passenger car. The salesman tells him that the two-seat sports car Adam sees on the car lot would be just perfect for six people. Adam test drives the car and then buys it.

If the act or threat would affect a person of average strength and intelligence, then and only then will the act constitute duress.

Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County. Unknown to both parties, this land had recently been rezoned and only single-unit dwellings can be constructed. In this case:

There are two distinct types of fraud.

If incorrect, which of the following would probably be considered a misrepresentation of a material fact?

What are the two types of fraud and what is the effect of each on the contract involved? Give an example of each type of fraud.

Contracts induced by threats of __________ are voidable, regardless of whether the coerced party has committed an unlawful act.

In the case of Rea v. Paulson , the court found no undue influence because the party in the dominant position had insisted that the weaker party seek independent advice about deeding her house.

A misrepresentation is material if:

An act that is not wrongful or unfair may constitute duress.