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lenb contracts- Questions & Answers
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lenb contracts- Questions & Answers
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lenb contracts- Questions & AnswersWhich of the following is a major obstacle to genuine assent in contracts? Correct Ans-a
mistake
For a mutual mistake to interfere with legal consent, it must involve all but which of the
following? Correct Ans-a buyer who relied on the seller's sales talk (also known as "puffery")
Which of the following conditions would not permit a court to invalidate a contract on the
grounds of unilateral mistake? Correct Ans-One party entered into the contract as a result of
sales talk, or "puffery."
When both parties to a contract are mistaken about either a current or a past material fact, it is
referred to as a(n) ______ mistake. Correct Ans-mutual
Understand that a court _______ void a contract for a mutual mistake of both
parties. Correct Ans-will not
For a mutual mistake to interfere with legal consent, it must involve all but which of the
following? Correct Ans-a contract for the sale of goods transaction that provided ambiguous
bargaining power
In the context of contract law, ______ is an untruthful assertion by one of the parties about a
material fact. Correct Ans-misrepresentation
The courts insist that there must be a _________ of the minds for there be a valid contract
between the parties. Correct Ans-meeting
In the context of contract law, misrepresentation is an untruthful assertion by one of the parties
about a(n) ______ fact. Correct Ans-material
,In the context of contract law, which of the following is true about an innocent
misrepresentation? Correct Ans-It is a false statement about a fact material to an agreement
that the person who made the statement believed to be true.
When an innocent misrepresentation occurs, the person who made the false statement had no
knowledge of the falsity of the claim. This means the person lacked ______. Correct Ans-
scienter
In some contract negotiations, one party makes a statement of material fact he or she thinks is
true but is negligent in making the assertion. Such ______ results when the party making the
statement would have known the truth about the fact had he or she used reasonable care to
discover or reveal it. Correct Ans-a negligent misrepresentation
__________ by any party as part of a contract is a basis for rescission. Correct Ans-Fraud
In the context of contract law, ______ is a false statement about a fact material to an agreement
that the person who made the statement believed to be true. Correct Ans-an innocent
misrepresentation
Scienter means ______. Correct Ans-knowledge
______ is a false statement of material fact made by a party who thinks it is true but who would
have known the truth about the fact had he or she used reasonable care to discover or reveal
it. Correct Ans-A negligent misrepresentation
Fraudulent misrepresentation is ______ misrepresentation. Correct Ans-intentional
Which of the following is not one of the elements required for a finding of fraudulent
misrepresentation in a contract? Correct Ans-a false statement about a fact that is
unimportant to the contract
, a preexisting commercial relationship between the parties in the agreement
In the context of contract law, a(n) ______ misrepresentation is a false representation of a
material fact that is consciously false and is intended to mislead the other party. Correct Ans-
fraudulent
In the context of contract law, ______ involves the active hiding of the truth about a material
fact in a contract. Correct Ans-concealment
Which of the following refers to the failure to provide pertinent information about a projected
contract? Correct Ans-nondisclosure
Under which of the following circumstances will a court find nondisclosure in a contract as
having the same legal affect as an actual false assertion? Correct Ans-a relationship of trust
exists between the parties to the contract
A seller removes 20,000 miles from a car odometer before selling the car to a buyer. This is
known as ______. Correct Ans-concealment
The failure to provide pertinent information about a projected contract is known as
______. Correct Ans-nondisclosure
Under which of the following circumstances will courts find nondisclosure in a contract as
having the same legal effect as an actual false assertion? Correct Ans-There is a failure to
correct an assertion of fact no longer true in light of events that have occurred since the
agreement was initially formed.
______ is present when the party making the false statement in a contract claims or implies
that he or she has personal knowledge of the accuracy of the assertion. Correct Ans-Intent to
deceive
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