Exam 5: Genuineness of Assent

So long as the plaintiff in a fraud in the inducement case actually relied on the defendant's false statement,the reliance element is met.

John was the oldest of three boys.John's mother was single,elderly,and owned her own home.Her primary concern was leaving her home to her children and minimizing taxes.John was an attorney and a certified public accountant.John told his mother that he would draw up a trust arrangement whereby she would live in the home as long as she was able to,and at that point (or upon her death if she lived in the home at that point),the home would be transferred to her three children,with John in charge of selling it,either to an outsider or to one of her three children.When his mother moved to an apartment,it was discovered that the trust transferred the house to John only.Discuss this situation.

A ______________ exists if both parties know the object of the contract but are mistaken as to its value.

Assent may only be demonstrated by words.

A statement of opinion may form the basis for fraud.

Which of the following,if false,could support a fraud claim?

Donald is looking at a new Porsche Boxter,and the salesman tells him that driving the Porsche should improve his love life.Based on this and the fact that Donald thinks the Porsche is really nifty and swell,he buys the car.Donald sues the dealer because his love life has not improved.Which is true?

Under which of the following circumstances can the mistaken party rescind a contract when there is a unilateral mistake?

Which of the following best describes duress?

Why is there a requirement to prove reliance in order to recover for fraud? Why should the law not penalize a person who knowingly makes a false statement,regardless of whether the person to whom the statement is made can prove reliance? Would there be any practical problems if the reliance requirement were eliminated?

The threat to bring a criminal charge (lawsuit)or civil lawsuit is duress.

To be actionable for fraud,a misrepresentation must relate to:

Assume that someone who has just inherited some artwork wants to sell some of it so he can use the money to buy drugs.He goes to an art dealer and asks the art dealer how much the art is worth.The art dealer can tell that the seller is desperate to sell the artwork,and tells the seller that the art is worth much less than its actual value.Based on this,the dealer negotiates a price and buys the artwork for much less than the seller could have received elsewhere.Were the actions of the dealer ethical in this situation? Can the seller rescind the contract? Should the seller be able to rescind the contract?

Silence is actionable misrepresentation anytime it relates to a material fact.

You buy a pair of very used skis for $25 from a store in Steamboat Springs.You learn later that Billy Kidd,a famous skier,owned the skis years ago.The store demands that you return them because it did not know that they once belonged to Billy Kidd.Which is true?

In a situation where one party to a contract has lied about the subject matter in order to entice the other party to enter into a contract,the type of fraud that would most likely be present is:

Francis signs an agreement with Sam on July 21,but 4 days later decides he made a bad deal.Which of the following,if true,will be a legal basis for Francis to get out of the contract?

If the seller of a product makes a misrepresentation of law that the buyer relies upon,can the buyer rescind the contract?

Robert is a pastor at United Church.One of the members of his congregation,Mrs.Smith,is a very devout believer.Robert convinces Mrs.Smith to sell him her farm for $5,000.The actual value of the farm is $500,000.Mrs.Smith dies and her estate sues to get her farm back.Which of the following best describes this situation?

A preexisting relationship is a required element of a duress claim.