Deck 10: Defenses to Contract Enforceability

Question 1

Misrepresentation of a material fact cannot occur through words alone.

Answer 1

False

Question 2

Justifiable reliance on a misrepresentation is an element of fraud.

Answer 2

True

Question 3

A contract entered into under undue influence is unavoidable.

Answer 3

False

Question 4

An element of fraud is the plaintiff's age,which must be less than twenty-one years.

Question 5

Misrepresentation of a material fact cannot occur through silence.

Question 6

A contract may have to be in writing to be enforceable even if its performance is possible within a year.

Question 7

To cancel a contract on the basis of a mistake,the mistake must be about a material fact.

Question 8

Misrepresentation of a material fact is an element of fraud.

Question 9

A mutual mistake of fact has no effect on the enforceability of a contract.

Question 10

Misrepresentation of a material fact can occur through conduct alone.

Question 11

An expert's false statement to a naive buyer about a technical detail may entitle the buyer to rescind a contract.

Question 12

Forcing someone to enter into a contract through fear created by threats makes the contract voidable.

Question 13

A contract involving a sale is the only contract relating to an interest in land that must be in writing to be enforceable.

Question 14

To rescind a contract is to cancel it.

Question 15

A contract must be in writing to be enforceable if the contract makes per?formance within one year possible.

Question 16

A unilateral mistake of fact has no effect on the enforceability of a contract.

Question 17

Overestimating the value of an object is a mistake for which a court will normally provide relief.

Question 18

If a price quotation contains a mistake in the adding of a number of fig?ures,the contract may not be enforceable.

Question 19

Only one party can make a mistake of fact.

Question 20

Forcing someone to enter into a contract through fear created by threats is duress.

Question 21

A prenuptial agreement does not have to be in writing to be enforceable.

Question 22

Under the Statute of Frauds,all contracts must be in writ?ing to be enforceable.

Question 23

Business Investment Company and Chic Properties,Inc. ,contract for the sale of a retail mall.A mutual mistake of fact will make it possible for ei?ther party to rescind the contract

A)if the mistake of fact is immaterial.
B)if the mistake of fact is material.
C)under any circumstances.
D)under no circumstances.

Question 24

To be enforceable,a writing evidencing an oral contract that would otherwise be unenforceable must include essential terms.

Question 25

To be enforceable,a contract for a sale of goods priced at $50 or more must be in writing.

Question 26

A written con?tract for a transfer of land is enforceable.

Question 27

Under the Statute of Frauds,any writing that is not a contract is void.

Question 28

Fact Pattern 10-2
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 10-2.Moore's misstatement of the price is

A)a bilateral mistake.
B)a fraudulent misrepresentation.
C)a unilateral mistake.
D)unconscionable.

Question 29

Fact Pattern 10-1
Gert contracts to sell two tracts of land to Hank.Both parties believe that the two tracts are adjacent,but in fact they are not.Gert is still willing to sell the land,but under these circumstances the deal would adversely affect Hank.
Refer to Fact Pattern 10-1.Because of the parties' belief about the adjacency of the property,their contract is

A)unavoidable.
B)unconscionable.
C)unenforceable.
D)voidable.

Question 30

An oral contract for a sale of land cannot be enforced even if the contract has been partially per?formed.

Question 31

Lew believes his old baseball bat has little value,but Murray is con?vinced it is a valu?able collector's item.Lew sells it to Murray for $10 before learning it is worth $1,000.Lew's sale of the bat to Murray may

A)be rescinded because a mutual mistake was made.
B)be rescinded because Murray had superior knowledge about the bat.
C)not be rescinded because a deal is a deal.
D)not be rescinded because Lew's mistake concerns the value of the bat.

Question 32

An integrated contract is the final embodiment of the terms of an agreement.

Question 33

To be enforceable,a writing evidencing an oral contract that would otherwise be unenforceable must include every term.

Question 34

Parol evidence includes oral evidence that is outside a written contract and not incor?po?rated into the contract expressly or by reference.

Question 35

A party's oral agreement to pay another's debt is not enforceable if the party's main purpose is to derive a benefit for himself or herself.

Question 36

Evidence of prior agreements that differ from the written terms of a con?tract can be introduced in court to alter the contract.

Question 37

Oral evidence of the modification of a contract after its making can be introduced at a trial.

Question 38

Fact Pattern 10-1
Gert contracts to sell two tracts of land to Hank.Both parties believe that the two tracts are adjacent,but in fact they are not.Gert is still willing to sell the land,but under these circumstances the deal would adversely affect Hank.
Refer to Fact Pattern 10-1.The parties' belief about the adjacency of the property is

A)a bilateral mistake.
B)a unilateral mistake.
C)fraud.
D)undue influence.

Question 39

Oral evidence of the meaning of a contract with incomplete terms can be introduced at a trial.

Question 40

Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms.

Question 41

Fitch agrees to assume Gandy's debt to Hybrid Seed Corporation.Fitch does not get any personal benefit for the agreement.To be enforceable,the prom?ise

A)must be in writ?ing.
B)must be in writ?ing only if the debt is valued at $500 or more.
C)must be in writing only if the debt will not be repaid within one year.
D)need not be in writing.

Question 42

Olin convinces Pia,who has no artistic ability,that Pia has considerable talent and induces Pia to pay Olin $10,000 for art lessons.When Pia realizes the truth,she files a suit against Olin.Pia is most likely to recover on the basis of

A)fraud.
B)mistake.
C)puffery.
D)undue influence.

Question 43

Rally offers to sell Sophie,who is seventeen years of age,a car about which Rally intentionally misrepresents several material facts.In reliance on the misrepresentations,Sophie buys the car.To prove fraud in this transaction,Sophie would have to show that

A)Rally intentionally deceived Sophie.
B)Rally made statements that were obviously exaggerated.
C)Sophie does not know anything about cars.
D)Sophie is under twenty-one years of age.

Question 44

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

A)enforce the contract and seek damages.
B)enforce the contract but not seek damages.
C)neither enforce the contract nor seek damages.
D)seek damages but not enforce the contract.

Question 45

Fact Pattern 10-3
Nano Corporation offers to sell a robotic device to Opal Assembly,Inc. ,but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500.Opal accepts the written offer.
Refer to Fact Pattern 10-3.Nano's best defense against enforcement of the contract is that Opal knew

A)a bilateral mistake supports the cancellation of a contract.
B)a mistake of value supports the cancellation of a contract.
C)a unilateral mistake supports the cancellation of a contract.
D)the price was below the prices of comparable devices.

Question 46

Stuffed Fauna,Inc. ,and Taxidermy Storage Company enter into a long-term lease for a warehouse.To be enforceable,the lease

A)must be in writ?ing.
B)must be in writ?ing only if the lease is valued at $500 or more.
C)must be in writing only if the lease is for longer than one year.
D)need not be in writing.

Question 47

Lacy uses undue influence to induce Mina to sign a contract to invest her National Education Fund student loan money in Overseas Bank.Mina may

A)avoid the contract.
B)do nothing after Mina signs the contract.
C)recover from National for a failure to monitor Mina's money.
D)recover from Overseas for a failure to undo Lacy's influence.

Question 48

Honey Bee Company (HBC)enters into an oral contract with Ivan under which he agrees to clean HBC's offices for two years.This contract is en?forceable by

A)either party.
B)HBC only.
C)Ivan only.
D)neither party.

Question 49

Dale files a suit against Eve,alleging that she used fraud to induce him to enter into a con?tract with her.Proof of an injury is required

A)to recover damages.
B)to rescind the contract.
C)to undo Eve's influence.
D)under no circumstances.

Question 50

Century Properties.Inc. ,and Darby enter into a con?tract for a sale of land.To be enforceable,the contract must be in writing if the land is valued at

A)any price.
B)only $500 or more.
C)the amount of a debt subject to a collateral promise.
D)the price paid in consideration of a promise of marriage.

Question 51

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

A)not rescind the contract.
B)rescind the contract on the basis of fraud.
C)rescind the contract on the basis of mistake.
D)rescind the contract on the basis of undue influence.

Question 52

Lem buys a used MP3 player for $50 and a new laptop for $1,500,and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month.The Statute of Frauds covers

A)the employment contract,and the laptop and MP3 purchases.
B)the employment contract and the laptop purchase only.
C)the employment contract only.
D)the laptop and MP3 purchases only.

Question 53

Reel Graphics,Inc. ,agrees to assume a debt of Suave Marketing Company to Town Credit Union.This promise is for Reel's benefit.To be enforceable,the promise

A)must be in writ?ing.
B)must be in writ?ing only if the debt is valued at $500 or more.
C)must be in writing only if the debt will not be repaid within one year.
D)need not be in writing.

Question 54

Fact Pattern 10-2
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 10-2.The effect of Moore's misstatement of the price will most likely fall on

A)Moore and NDC,who must split the difference.
B)Moore only.
C)NDC only.
D)neither Moore nor NDC.

Question 55

Fact Pattern 10-3
Nano Corporation offers to sell a robotic device to Opal Assembly,Inc. ,but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500.Opal accepts the written offer.
Refer to Fact Pattern 10-3.Opal's best argument in favor of enforcement of the contract is that

A)a bilateral mistake does not afford relief from a contract.
B)a mistake of value does not afford relief from a contract.
C)a unilateral mistake does not afford relief from a contract.
D)the price was below the prices of comparable devices.

Question 56

Cody and Debora enter into an oral contract under which Cody agrees to work on Debora's ranch for not less than ten days.This contract is enforce?able by

A)Cody only.
B)Debora only.
C)either party.
D)neither party.

Question 57

Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides "like the wind." Kurt's statement is

A)duress.
B)fraud.
C)puffery.
D)undue influence.

Question 58

Gregor uses duress to force Honi to agree to pay him for protecting Honi's Coffee Shop against vandalism and destruction.Honi may

A)avoid the contract or choose to carry it out.
B)do nothing once she has agreed to pay.
C)recover from her insurer for a failure to direct her "protection."
D)recover from the local police for a failure to protect her "direction."

Question 59

Roc buys a farm from Steve,who claims that it would be a prime site for a housing subdivision.Roc later learns that the law does not permit the land to be used for housing.Roc may

A)not rescind the contract.
B)rescind the contract only if Roc did not know the law before the deal.
C)rescind the contract only if Steve knew about the law before the deal.
D)rescind the contract only if the law is not common knowledge.

Question 60

Safron threatens physical harm to force Tivoli to sell his business,Umbrellas Unlimited,Inc. ,to Safron for a below-market price.This is

A)a mistake of value.
B)duress.
C)fraud.
D)undue influence.

Question 61

Fact Pattern 10-4
Jeff and Kris sign a written contract for the sale of Jeff's Koffee Kiosk to Kris.The parties intend their written contract to be a final statement of the terms of their agreement,including all of its conditions.
Refer to Fact Pattern 10-4.The writing that Jeff and Kris signed is

A)a completely integrated contract.
B)a conditionally integrated contract.
C)an agreeably integrated contract.
D)an obviously integrated contract.

Question 62

Don is an elderly man who lives with his nephew Evan.Don is depend?ent on Evan for care.Evan advises Don to "invest" in Evan's "profes?sional gambling" venture.Evan tells Don that he will no longer provide care unless Don makes this investment.Don liq?uidates his other investments,signs a contract with Evan,and gives him the funds.Can Don set aside this contract?

Question 63

In a transaction for the sale of a warehouse,Saf-T Storage Company tells Tri-County Investment Corporation that the office furniture is in?cluded.The contract says nothing about office furniture,but does state,"This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?

Question 64

Fact Pattern 10-5
Odell and Poppy sign a contract for the sale of Odell's Pizza Parlor to Poppy.The parties intend their written contract to be a final statement of most,but not all,of the terms of their agreement-Odell must first buy the building from Quin,after which Odell and Poppy will negotiate a final price.
Refer to Fact Pattern 10-5.Poppy later disputes some of the provisions of the deal with Odell.If the dispute results in litigation,a court will most likely admit evidence of

A)ambiguous additional terms.
B)consistent additional terms.
C)contradictory additional terms.
D)fraudulent additional terms.

Question 65

Vern's Roofing Company and Weatherall Tiles,Inc. ,sign a written con?tract for a sale of goods.To be enforceable,this written contract must include

A)a correct title,such as "Purchase Order" or "Sales Invoice."
B)a date,such "September 9,2009" or "09/09/09."
C)a quantity term,such as "50 pallets" or "100 cartloads."
D)the parties' cell phone numbers or e-mail addresses.

Question 66

Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store,and downloads $300 worth of digital music from E-Music.com.To be enforceable,the contract that must be in writing is the purchase of

A)the digital music,the MP3 player,and the speakers.
B)the MP3 player and the speakers only.
C)the MP3 player only.
D)the speakers only.

Question 67

Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the terms on a sheet of the center's letterhead stationery,which only Theo signs.This agreement is most likely enforceable against

A)neither Theo nor Uma.
B)Theo and Uma.
C)Theo only.
D)Uma only.

Question 68

By fraudulently misrepresenting a number of material facts,Sid induces Ty to enter into a contract for the sale of a warehouse.Sid also tells Ty that his commission is 6 percent,but their signed,written contract states "12 percent." In a dispute between Sid and Ty over this contract,the court may apply the parol evidence rule,which governs

A)contracts entered into by parolees.
B)contracts that are induced by fraud.
C)contracts that must be in writing to be enforceable.
D)the admissibility in court of oral evidence.

Question 69

Mia orally promises Nick that she will buy his fishing trawler for $10,000.Before either party acts in reliance on this promise,under the doctrine of promissory estoppel,the transaction is enforceable by

A)either party.
B)Mia only.
C)neither party.
D)Nick only.

Question 70

Fact Pattern 10-4
Jeff and Kris sign a written contract for the sale of Jeff's Koffee Kiosk to Kris.The parties intend their written contract to be a final statement of the terms of their agreement,including all of its conditions.
Refer to Fact Pattern 10-4.Kris later disputes some of the provisions of the deal with Jeff.If the dispute results in litigation,a court will most likely exclude evidence that

A)buttresses the written terms.
B)contradicts the written terms.
C)duplicates the written terms.
D)reinforces the written terms.

Question 71

Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins,which they both sign.A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

A)every term.
B)the essential terms.
C)the preliminary terms.
D)the qualitative terms.

Question 72

Fact Pattern 10-5
Odell and Poppy sign a contract for the sale of Odell's Pizza Parlor to Poppy.The parties intend their written contract to be a final statement of most,but not all,of the terms of their agreement-Odell must first buy the building from Quin,after which Odell and Poppy will negotiate a final price.
Refer to Fact Pattern 10-5.The writing that Odell and Poppy signed is

A)a completely integrated contract.
B)a conditionally integrated contract.
C)a partially integrated contract.
D)a supplementally integrated contract.