Exam 11: Conduct Invalidating Assent

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:

Economic coercion that compels a person to enter into a contract renders that contract void.

Matt sells bikes at a local discount store.To encourage Bob to buy a more expensive model than he originally contemplated,Matt tells Bob,"This is the most awesome bike money can buy at this price.You can expect lots of riding pleasure." Based on this statement Bob buys the bike.A week later,before his bike is fully paid for,Bob sees a far superior bike for a lower price at another store.Bob can avoid his contract with Matt because of fraudulent misrepresentation.

For a misrepresentation to be material,it must be likely to induce a reasonable person to manifest assent or the maker must know that it would be likely to induce the recipient to do so.

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:

To sustain a case of fraud in the inducement,the injured party must prove that he actually relied upon the false representation.

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

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

By holding a knife to his back,Ed compelled Sean to sign a contract advantageous to Ed.This contract was entered under:

Define undue influence and name some of the relationships that would be affected.

Sam wants to sell his golden retriever to Al.Sam tells Al that the dog is three years old and that he will point,back,and retrieve.Al relies on these statements and purchases the bird dog.Although the dog is three years old and will point at birds,he will not back (honor another dog's point).The buyer has most probably been a victim of:

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

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

Which of the following results in a void contract?

Define and discuss the concept of materiality in relation to misrepresentation

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.

To obtain relief for negligent or innocent misrepresentation,the elements of fraud must be present but the misrepresentation need not be material.

Which of the following is NOT an element of fraud?

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

There are two distinct types of fraud.