Exam 14: B: Mistakes,fraud,and Voluntary Consent

Sam uses duress to force Tanya to agree to pay him for protecting her re?tail store-Tanya's Trends-against vandalism and destruction.Tanya may

Misrepresentation of a material fact is an element of fraud.

Sylvia creates a profile for Today's Date,Inc. ,an online dating service.She exaggerates her appealing features and posts a photo of her friend Uva,whom Sylvia thinks is prettier.Enticed by the profile,Van subscribes to the service so that he can contact Sylvia.Van is most likely a victim of

If the parties to a contract attach materially different meanings to a con?tract term,the contract cannot be rescinded.

Reformation is a remedy in which the terms of a contract are altered to reflect the true intentions of the parties.

Veronica offers to sell Rowena her luxury sedan and says that it has never been in an accident.Rowena hires Laszlo,a mechanic,to appraise the vehicle.Laszlo says that it most likely has been in an accident.In spite of this information,Rowena buys the car.Later,when it develops mechanical problems,she can

An innocent party can enforce a fraudulent contract.

Fact Pattern 14-A1 Linea,an employee of Hard Labor Industries (HLI),is injured in a work-related accident.Based on the diagnosis of Newt,a doctor,Linea accepts $50,000 from HLI and waives the right to future claims.Newt's diagnosis later proves to have been wrong. -Refer to Fact Pattern 14-A1.Most likely,Linea may

Fact Pattern 14-A3 Flip,an accountant,certifies an audit for Erstwhile Corporation,Flip's client,knowing that Erstwhile will use the audit to obtain a loan from Deepwater Bank.Flip believes that the audit is true and does not intend to deceive the bank,but does not check the audit before certifying it. -Refer to Fact Pattern 14-A3.Under these circumstances,Deepwater's best course of action is most likely to

Fact Pattern 14-A1 Linea,an employee of Hard Labor Industries (HLI),is injured in a work-related accident.Based on the diagnosis of Newt,a doctor,Linea accepts $50,000 from HLI and waives the right to future claims.Newt's diagnosis later proves to have been wrong. -Refer to Fact Pattern 14-A1.In terms of the impact on Linea's agreement with HLI,Newt's misdiagnosis is

Fact Pattern 14-A3 Flip,an accountant,certifies an audit for Erstwhile Corporation,Flip's client,knowing that Erstwhile will use the audit to obtain a loan from Deepwater Bank.Flip believes that the audit is true and does not intend to deceive the bank,but does not check the audit before certifying it. -Refer to Fact Pattern 14-A3.On learning the truth,Deepwater's chief loan officer confronts Flip,who says,"I didn't know." This is

Economic need generally is sufficient to constitute duress.

Nero makes an honest but erroneous statement that misrepresents a ma?te?rial fact in a contractual transaction with Odell.Nero is guilty of

A mistake of fact cannot be unilateral.

Fact Pattern 14-A2 Moore Properties,Inc. ,offers in writing to sell to New Development Corporation (NDC)a certain half-acre of land for "$112,000." After New Development signs the offer in acceptance and returns it,Moore discovers that the price should have been stated as "$121,000." -Refer to Fact Pattern 14-A2.The effect of Moore's misstatement of the price will most likely fall on

A contract written exclusively by one party and presented to the other party on a take-it-or-leave-it basis is an adhesion contract.

Bret is convicted of arson for burning down his warehouse to collect the in?surance.On an application for insurance from Cover-All Insurance Company on a new building,in answer to a question about prior convictions,Bret does not disclose his convic?tion.This makes the contract

Reliance on a non-expert's statement of opinion will not normally enti?tle a party to relief.

Misrepresentation of a material fact cannot occur through words alone.

Gina induces Hu to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features.When Hu discovers the truth,Hu can