Deck 9: Mutual Agreement

Question 1

For the injured party to claim fraud,he or she must prove all of the following of the statement or act EXCEPT that it:

A) was a misstatement or nondisclosure of a material fact.
B) was made with no knowledge of its falsity or with reckless disregard of its truth.
C) was relied on by the injured party.
D) resulted in loss to the injured party.

Answer 1

B

Question 2

There is no remedy for the injured party under fraud and misrepresentation.

Answer 2

False

Question 3

For a contract to be dissolved because of a mistake,the law usually requires that only one of the parties has to be part of the mistake.

Answer 3

False

Question 4

Duress is the act of applying unlawful or improper pressure or influence to a ?person in order to gain his agreement to a contract.

Question 5

Misdemeanor is the intentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party.

Question 6

Genuineness,or reality of an agreement,is said to be present in a contract when there is a true meeting of the minds.

Question 7

In the eyes of the law,a misrepresentation is a belief that is not in accord with the facts.

Question 8

The "take-it-or-leave-it" contracts are quite common and are normally unenforceable.

Question 9

The intentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party amounts to:

A) fraud.
B) duress.
C) mistake.
D) misrepresentation.

Question 10

A person who has power and abuses it to control the actions of another person on the basis of a special or confidential relationship commits fraud.

Question 11

When the misstatement is made knowingly or recklessly,it amounts to:

A) fraud.
B) mistake.
C) misrepresentation.
D) duress.

Question 12

Puffing is considered a mere expression of opinion that refers to generalities.

Question 13

When the UCC was written,it was intended that the unconscionable clause would apply only to sales of goods.

Question 14

A physician may have the power to control the actions of his patients because of a special or confidential relationship.

Question 15

Mistakes relating to contracts may be concerned with the nature of the subject matter or the quality of the subject matter.

Question 16

If there is any misunderstanding or if any force or deception is used by either party to obtain the necessary agreement of the other party,the contract is voidable,and may be disaffirmed at the option of the injured party.

Question 17

If agreement of either party is ?obtained by fraud,misrepresentation,mistake,undue influence,or duress,or if the contract is one of adhesion,or is unconscionable,a(n):

A) executed contract results.
B) valid contract results.
C) void contract results.
D) voidable contract results.

Question 18

The pressure under duress only take the form of a threat of bodily harm to an individual or to his family,but not the threat of serious loss or damage to his property.

Question 19

Genuineness,or reality,of agreement is said to be present in a contract when there is:

A) true meeting of minds.
B) knowledge of falsity.
C) puffing.
D) duress.

Question 20

A fraud charge can be proven only if it is available in writing,but not if it is spoken,by acts or conduct.

Question 21

If a party can prove only misrepresentation,the remedy available to the injured party is to:

A) extend the contract.
B) bring suit for damages.
C) accept the contract.
D) cancel the contract.

Question 22

For a contract to be dissolved because of a mistake,the law usually requires that both the parties be a part of the:

A) mistake.
B) duress.
C) misunderstanding.
D) undue influence.

Question 23

Randolf,a wealthy connoisseur of arts,was invited to an art exhibition.He became very interested in one of the showcased art exhibits,and approached the manager to buy the piece.While he was interested in the painting of the catalogue number 1201,the art gallery's manager mistakenly assumed he was interested in another piece.When it was the time to complete the transaction,the manager realized that he had instead sold and delivered the wrong painting,and immediately clarified this with Randolf.In this instance,the contract can be canceled by either party for:

A) mutual mistake.
B) unilateral mistake.
C) negligence.
D) misrepresentation.

Question 24

The law allows for a certain amount of "sales talk," or puffing,that is not considered as:

A) undue influence.
B) duress.
C) fraudulent.
D) misrepresentation.

Question 25

Puffing is also considered:

A) a mistake.
B) dealer's talk.
C) misrepresentation.
D) fraud.

Question 26

Insurance policies may be classified as a contract of:

A) service.
B) adhesion.
C) duress.
D) undue influence.

Question 27

Contracts that are shockingly unfair and unjust are known as:

A) unconscionable contracts.
B) unrequited contracts.
C) inadequate contracts.
D) contracts of adhesion.

Question 28

Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person.If this power is improperly used to his or her personal advantage,then it amounts to:

A) mistake.
B) misrepresentation.
C) undue influence.
D) duress.

Question 29

Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person.Such relationships are found in all of the following,EXCEPT that of a(n):

A) employer and an employee.
B) physician or nurse and a patient.
C) attorney and a client.
D) client and vendor.

Question 30

The unintentional misstatement or nondisclosure of a material fact that results in inducing another to enter into an agreement to his or her loss is known as:

A) fraud.
B) duress.
C) mistake.
D) misrepresentation.

Question 31

If the mistake in the contract is made by both parties then it amounts to:

A) mutual mistake.
B) unilateral mistake.
C) intentional mistake.
D) conditional mistake.

Question 32

When threats are used to force someone to enter into a contract,the agreement may be dissolved by:

A) the ?injured party.
B) a court order.
C) a third party.
D) an arbitrator.

Question 33

Checkroom and luggage receipts are examples of:

A) simple contracts.
B) contracts of adhesion.
C) unconscionable contracts.
D) expressed contracts.

Question 34

The act of applying unlawful or improper pressure or influence to a person in order to gain his or her agreement to a contract is known as:

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

Question 35

Contracts that involve parties of unequal bargaining power are often considered:

A) unconscionable.
B) unforgivable.
C) inadequate.
D) as contracts of adhesion.

Question 36

The law makes it clear that the mistaken belief must ?concern a(n):

A) precedent.
B) existing fact.
C) belief.
D) overruled law.

Question 37

While courts have long been reluctant to uphold ?unconscionable contract,more recently,however,the UCC has made such contracts even less likely to be:

A) enforced.
B) reduced into writing.
C) agreed.
D) notified.

Question 38

If the mistake in the contract is made by only one party,then it amounts to:

A) mutual mistake.
B) intentional mistake.
C) unilateral mistake.
D) conditional mistake.

Question 39

The court decisions involving mistakes in contracts are often complex and the court attempt to determine whether the mistake was:

A) intentional.
B) unintentional.
C) unilateral or mutual.
D) unilateral and misrepresented.

Question 40

An injured party who can successfully prove fraud may have the remedy to:

A) claim specific performance.
B) extend the contract.
C) accept the contract.
D) bring suit for damages.

Question 41

The provision,"If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made,the court may refuse to enforce the contract,or it may enforce the remainder of the contract without the unconscionable clause,or it may so limit the ?application of any unconscionable clause as to avoid any unconscionable result." This was stated under which provision of law?

A) UCC 2-300
B) UCC 2-301
C) UCC 2-302
D) UCC 2-303

Question 42

Explain how defective agreements can occur.

Question 43

Explain what amounts to a "contract of adhesion."

Question 44

What is an "unconscionable contract," and what are the court's options when handling one?