Duress is found when one party was forced into the agreement by the wrongful act of another. An example of duress is when one party threatens physical harm to gain consent to a contract.
When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it the statement is a N _____?
3. A negligent misrepresentation results when the party making the statement would have known the truth about the fact had she used reasonable care to discover or reveal it.
Which of the following refers to a special relationship in which one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person?
Undue influence refers to those special relationships in which one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person and interfere with that person’s ability to make his or her own decision.
Which of the following is true regarding the effect of an innocent misrepresentation on a contract quizlet?
Which of the following is true regarding the effect of an innocent misrepresentation on a contract? It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract, and it also makes the contract void and of no effect.
Which of the following must a mutual mistake involve in order for a mutual mistake to interfere with legal consent?
For a mutual mistake to interfere with legal consent, it must involve a basic assumption about the subject matter of the contract, a material effect on the agreement , and an adverse effect on a party that did not agree to bear the risk of mistake at the time of the agreement.
What is an example of an unenforceable contract?
Contracts that include terms opposing state or federal law are automatically unenforceable. For example, if an employer forces an employee to sign a contract that prevents him or her from taking sick leave , it would be considered unenforceable.
What is an example of an unconscionable contract?
A typical example of an unconscionable contract occurs when one party is an experienced dealer in a certain type of business and the other party is an average customer . ... If the court deems the contract unconscionable, it will be declared unenforceable and void.
What are the three possible forms of consideration?
Something bargained for and received by a promisor from a promisee. Common types of consideration include real or personal property, a return promise, some act, or a forbearance . Consideration or a valid substitute is required to have a contract.
Can misrepresentation void a contract?
A misrepresentation is a false statement of a material fact made by one party which affects the other party’s decision in agreeing to a contract. If the misrepresentation is discovered, the contract can be declared void and, depending on the situation, the adversely impacted party may seek damages.
What is the effect of a negligent misrepresentation?
What is the effect of negligent and fraudulent misrepresentation? The party can either rescind (cancel) the contract or keep the contract and sue .
Which of the following is what a person will receive in return for performing a contract obligation?
It is what a person will receive in return for performing a contract obligation. Consideration can be anything , as long as it is the product of a bargained-for exchange.
Which of the following is an example of misrepresentation?
In a fraudulent misrepresentation, a party makes a false claim regarding a contract or transaction but knows it isn’t true. For example, if a person is selling a car and knows there is a problem with the transmission , yet advertises it in perfect mechanical condition, they have committed fraudulent misrepresentation.
Are all exculpatory clauses are unlawful?
All exculpatory clauses are unlawful . In the law when both parties are equally responsible for an illegal agreement, it is known as in pari delicto.
Which of the following is true when there is a mutual mistake in a contract?
Which of the following is true when there is a mutual mistake in a contract? When both parties to a contract are mistaken about either a current or a past material fact, only the offeror can rescind the contract.
What happens if there is a mistake in the contract?
If the non-mistaken party knows or should know that the other party has made a unilateral mistake, the result is usually contract rescission (cancellation). On the other hand, if the other party was not aware of the mistake, the contract can be reformed (rewritten) .
What is the effect of mistake on a contract?
If you discover a mistake in a contract, one consequence may be that the contract becomes void ab initio . This means that the court takes the contract as not existing, based on this mistake. Alternatively, it can rule that the parties never lawfully entered into the contract.
