Exam 11: Conduct Invalidating Assent

Hal holds a gun to Irving's head and tells him to sign the contract.Irving signs the contract, because he fears for his personal safety.The contract is void, because it was entered into under duress.

Which of the following can meet the scienter requirement to establish fraud in the inducement?

Threats of resorting to a civil lawsuit to recover a debt does not constitute duress.

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

Generally, whether or not the parties deal at arm's length does not affect whether silence alone amounts to fraud.

Undue influence is the taking of unfair advantage of a person by reason of a dominant position based upon a confidential relationship.

What elements need to be proved to establish each type of fraud?

Which of the following is NOT an element of fraud?

Fred is a concert violinist who is scheduled to perform at Carnegie Hall for the first time.He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going rate for a Stradivarius.He later learns the violin is an imitation, although it is a good imitation, which fooled even the dealer.In this case:

Fraud in the inducement will render an agreement void.

The remedies of damages and rescission are available for:

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.

A famous decision involving mutual mistake is Raffles v.Wichelhaus, a case involving two ships with the same name which were confused by the two parties to the contract.

Ben and Kate had been negotiating Ben's employment contract in conversations over the phone for a couple of weeks.Finally, they agreed on some contract terms.Kate offered to create a draft of the contract for Ben to read over.On the same day Ben was fired from his job.Afraid he would be unemployed, Ben signed Kate's draft without reading it.In this example Ben:

Which of the following results in a void contract?

In relation to fraud, scienter is a legal term which means:

A statement of misleading half-truth is considered the equivalent of a false representation.

Justifiable reliance:

Marjorie has been cared for by her family physician for 35 years.She decides to assume the mortgage on his new clinic.The contract is automatically invalid because of undue influence.

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: