Deck 10: Real Assent

Question 1

If a contract has been executed, the infant must face more arduous consequences.

Answer 1

True

Question 2

In duress by threat, _____.

A) the threat must be proper
B) there must be a reasonable alternative
C) the test for inducement is objective
D) the contract is rendered voidable
E) the test for inducement is based on what a more reasonable person might have feared

Answer 2

D

Question 3

If a statement of fact is made false by later events, it must be disclosed as false.

Answer 3

True

Question 4

A defendant can win a case by solely demonstrating that the plaintiff would have assented to the contract even without the misrepresentation.

Question 5

A fraudulent misrepresentation is a criminal wrong.

Question 6

Which of the following is true about undue influence?

A) It is a harsher form of duress.
B) The unfairness does not lie in any misrepresentation.
C) Usually the fact pattern involves the victim receiving advice from most people except the persuader.
D) A contract made under undue influence stands void.
E) The perpetrator threatens the victim to assent to the contract.

Question 7

A person who makes the mistake of not reading a written document will usually get no relief.

Question 8

Identify the correct statement in proving fraudulent misrepresentation.

A) Concealment is a more passive type of nondisclosure.
B) Nondisclosure of a fact operates as a misrepresentation under all circumstances.
C) The act of concealment should be direct.
D) Concealment may consist of diverting the other party from gaining the necessary knowledge.
E) Sales puffery is considered a fact.

Question 9

Which of the following is true with regard to misrepresentation?

A) Fraud in the execution is defined as some misrepresentation about the subject of the contract.
B) Fraud in the inducement is defined as a misrepresentation as to the character of the contract.
C) If a misrepresentation is intentional, it is non-fraudulent.
D) If a misrepresentation is unintentional, it is fraudulent.
E) A non-fraudulent misrepresentation can be innocent.

Question 10

An infant will lose the power to avoid a contract if the rights of third parties intervene.

Question 11

In the case of mutual mistake, relief may be granted if the mistake concerns a basic assumption on which the contract was made.

Question 12

A Michigan statute prohibits an infant from disaffirming if he has signed a separate instrument containing only the statement of age, date of signing, and the signature.

Question 13

A person who was intoxicated at the time he made a contract cannot subsequently ratify it.

Question 14

A contract made by a person under guardianship is voidable.

Question 15

Which of the following is true of fraudulent misrepresentation?

A) A fraudulent misrepresentation is a crime.
B) Fraudulent misrepresentation is a misstatement of facts that is unintentionally made and justifiably relied upon.
C) If a statement of fact is made false by later events, it must be disclosed as false.
D) A half-truth cannot amount to misrepresentation.
E) A typist's unnoticed error in a letter cannot amount to misrepresentation.

Question 16

If the tort suit is an indirect method for enforcing a contract, infants are liable for their torts.

Question 17

If the misrepresentation is fraudulent, the victim can avoid the contract, no matter the significance of the misrepresentation.

Question 18

Fraud in the execution involves some misrepresentation about the subject of the contract that stimulates assent.

Question 19

In case of disavowal, an infant has to account for what has been consumed during the contract.

Question 20

A contract induced by improper threats or undue influence is void.

Question 21

What are the requirements for a real assent? What are the various remedies available in case an agreement is not made under real assent?

Question 22

In proving fraud, which of the following is true in case of reliance by the victim?

A) The reliance need not be solely on the false assertion.
B) The defendant can win a case by demonstrating that the plaintiff would have assented to the contract even without misrepresentation.
C) If the victim fails to read documents which give him the true facts, he can complain that he relied on contrary statements.
D) The rule of reliance applies to statements about the occurrence of events in the past, present, and future.
E) If the statement is one that concerns matters peculiarly within the person's purview, he would be held to have justifiably relied on the other party's false assertion.

Question 23

Which of the following is true about persons who are mentally ill?

A) A contract made by a person who is mentally ill is still non-voidable by the person after regaining sanity.
B) If a guardian has been legally appointed for a mentally ill person, any contract made by the latter is valid and can be ratified by the ward.
C) If a contract is for a necessity, the other party to the contract cannot claim against the estate of the one who is mentally ill.
D) In a contract for necessity, if the contract is fair and the other party has no knowledge of the mental illness, the court does not have the power to order relief.
E) In a contract for necessity, only if a mental illness impairs the competence of the person in the particular transaction can the contract be avoided.

Question 24

Which of the following led to the final decision by the court in the Vokes v. Arthur Murray, Inc. case?

A) The contract did not develop Vokes' dancing abilities.
B) The contract did not develop Vokes' dance aptitude.
C) The contract led to Vokes having difficulty in hearing the musical beat.
D) There was an assertion of intentions.
E) The contract was a misrepresentation of assertion of opinion.

Question 25

In Konic International Corporation, v. Spokane Computer Services, Inc., which of the following led to the final decision by the court?

A) There was a mistake on part of Young who did not have the authority to order the equipment.
B) The contract was made intentionally misrepresenting the facts.
C) The mistake was mutual, relating to the failure of communication.
D) There was a misstatement of fact by Konic.
E) There was a fraudulent misrepresentation.

Question 26

Which of the following statements pertaining to mistakes is true?

A) If one party has made a mistake about the subject matter, a contract is voidable.
B) A person who has made the mistake of not reading a written document would still get relief.
C) Relief will be afforded to one whose mistake is caused by negligence, and if the person would suffer reasonable hardship if the mistake were not corrected.
D) If the dealer has to bear the risk of mistake, the contract is valid.
E) A mistake is unilateral if it has a material effect on the agreed-to exchange.

Question 27

An) _____ is one that would be likely to induce a reasonable person to manifest his assent.

A) innocent misrepresentation
B) rescission
C) duress
D) misstatement of fact
E) material misrepresentation

Question 28

What was the reason that led to the final decision by the court in the Hodge v. Shea case?

A) The consideration offered by Dr. Hodge did not require an actual detriment.
B) Dr. Hodge promised a benefit to which he had a pre-existing obligation.
C) Dr. Hodge acted in haste in an effort to fortify what he must have realized was a dubious contract.
D) Since Mr. Shea was not infirm to the point of incompetency to contract, the manifesting assent was binding.
E) Mr. Shea's assent to the contract, without notice to Mr. Ransdell and under deliberate enticement, was not the product of an exercise of an informed judgment.

Question 29

In Reed v. King, what was the reason that led to the final decision by the court?

A) King and the real estate agent demurred to Reed her first amended complaint for failure to state a cause of action.
B) Reed paid $76,000 for the house which was actually worth $65,000.
C) The property had a legal impairment to use.
D) The fact concealed deprived Reed of the intended use of purchase.
E) The fact concealed had a material effect on the agreed exchange of performance.

Question 30

With reference to assertions of intention, which of the following is NOT true?

A) Usually, assertions of intention are not considered facts.
B) The right to misstate intentions is useful chiefly in the acquisition of business.
C) To be a misrepresentation that will permit rescission, an assertion of intention must be false at the time made.
D) To render a contract voidable, the false assertion of intention must be harmful in some way to other interests of the recipient.
E) The law allows considerable leeway in the honesty of assertions of intention.

Question 31

In a contract with an infant, _____.

A) eighteen-year-olds may assent to binding contracts
B) if the contract has been executed, the infant would be relieved from facing more arduous consequences
C) if the contract is executory, the infant will be liable under a quasi-contract
D) the infant will lose his power to accept the contract if the rights of third parties intervene
E) if a tort suit is an indirect method of enforcing a contract, infants will not be held liable for their torts