Exam 13: Mistakes and Other Contract Defects

Nero is an elderly man who lives with his nephew Mervyn.Nero is depend?ent on Mervyn for support.Mervyn advises Nero to "invest" in Mervyn's "profes?sional gambling" venture,or Mervyn will no longer support him.Nero liq?uidates his other investments and signs a contract with Mervyn,to whom Nero gives the funds.Can Nero set aside this contract?

A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.

Fact Pattern 13-2 (Questions 13-14 apply) Grover contracts to sell two tracts of land to Hank.Both parties believe that the two tracts are adjacent,but in fact they are not.Grover is still willing to sell the land,but under these circumstances the deal would adversely affect Hank. -Refer to Fact Pattern 13-2.The parties' belief about the adjacency of the property is

A false statement by an expert to a naive buyer about a technical detail will usually entitle the buyer to rescind or reform a contract.

Shelby wants to sell his Bobcat Skidsteer for $21,000.He emails Dave and offers to sell Dave the Bobcat.Due to a typo,Shelby tells Dave that he wants $20,100 for the Bobcat.Dave accepts the offer and pays Shelby $20,100.Shelby is

An innocent party may NEVER rescind a fraudulent con?tract.

A general contractor who knows that a subcontractor's bid is a mistake cannot enforce the bid.

A contract entered into under undue influence is voidable.

Garth owns two all-terrain vehicles (ATVs),worth $1,000 and $500,re?spec?tively.Helen agrees to buy "Garth's ATV" for $750.Garth believes,in good faith,that he is selling the $500 ATV.Helen believes,in good faith,that she is buying the $1,000 ATV.In this situation

Beau sells a car to Cody without disclosing that the odometer,which reads 40,000 miles,was disconnected 80,000 miles ago.Beau is liable for

Kathleen sells Richard a race horse for $1,000.Both Kathleen and Richard think that the horse is too slow to win any races.Richard then enters the horse in a race,and it wins easily.He enters it in more races,and the horse soon wins more than $1 million.Kathleen tries to rescind the contract to sell the horse,claiming that it was worth more than $1,000.A court will

A significant mistake in value will rarely enable a party to a contract to avoid the contract.