Question 1

To prove fraud,the following elements must be shown: 1)The wrongdoer made a false representation of a material fact; 2)The wrongdoer intended to deceive the innocent party; 3)The innocent party unjustifiably relied on the misrepresentation; and 4)The innocent party was injured.

Accepted Answer

False

Question 2

Negligent misrepresentation is commonly referred to as fraudulent misrepresentation.

Accepted Answer

Negligent misrepresentation is a type of misrepresentation that occurs when a party makes a false statement without knowing whether it is true or false, and without reasonable grounds for believing it to be true. The difference between fraudulent misrepresentation and negligent misrepresentation is that with fraudulent misrepresentation, the party making the false statement knows that it is false or recklessly disregards whether it is true or false. Therefore, negligent misrepresentation is not equivalent to fraudulent misrepresentation.

Question 3

A mistake will never affect whether assent to a contract is genuine.

Accepted Answer

A mistake can actually affect the genuineness of assent to a contract, as it could cause one or both parties to not fully understand or agree to the terms of the contract. If a mistake is material, meaning it involves a significant aspect of the contract, it could possibly render the contract unenforceable.

Question 4

It is possible to commit a fraud by remaining silent and not saying anything.

Accepted Answer

Silence can be considered a form of concealment, and in certain circumstances, omitting information or withholding the truth with the intention to deceive can be considered as fraud.

Question 5

A fraudulent misrepresentation made in order to receive a policy of life insurance may result in the company not having to pay on the policy.

Accepted Answer

A fraudulent misrepresentation (lying or withholding important information) on the life insurance application can result in the policy being voided, which means that the insurance company does not have to pay out on the policy. This is a common clause in life insurance policies known as the "incontestability clause."

Question 6

An ambiguity in a contract cannot constitute a mutual mistake of a material fact.

Accepted Answer

An ambiguity in a contract can lead to a mutual mistake if both parties have a different understanding of a material term, affecting the agreement's validity.

Question 7

In a contract situation involving fraud,the innocent party can either rescind the contract and obtain restitution,or enforce the contract and sue for contract damages.

Accepted Answer

The innocent party can choose to either rescind the contract and seek restitution, or enforce the contract and sue for contract damages. This is a valid statement.

Question 8

If there has been a mutual mistake,the contract may be rescinded on the grounds that no contract has been formed because there has been no "meeting of the minds" between the parties.

Accepted Answer

This is true. If there has been a mutual mistake, meaning both parties were mistaken about a material fact, and as a result, did not come to a "meeting of the minds," then the contract can be rescinded. This means that the contract is essentially nullified, and neither party will be held to its terms.

Question 9

Where two parties contract for the sale of an old violin,but neither party realizes that it is a rare and extremely valuable violin,this is a mutual mistake of fact allowing rescission.

Accepted Answer

The answer of Where two parties contract for the sale...

Question 10

A mutual mistake of fact is more likely to result in a party being able to rescind a contract than is a mutual mistake as to value.

Accepted Answer

A mutual mistake of fact involves both parties having a misunderstanding about a fundamental aspect of the contract, which can make the contract voidable. In contrast, a mutual mistake as to value typically does not affect the validity of the contract, as value is subjective and not a factual error.

Question 11

A defense to the enforcement of a contract is that the assent of one or both of the parties to the contract was not genuine or real.

Accepted Answer

This defense is known as "lack of genuine assent" or "lack of mutual assent" and can include situations such as fraud, duress, undue influence, or mistake. If it is proven that one or both parties did not truly agree to the terms of the contract, then the contract may be unenforceable.

Question 12

The law permits rescission of some contracts made in mistake.

Accepted Answer

The law recognizes that sometimes parties may enter into a contract under a mistake of fact or law, and in such cases, the affected party has the right to rescind or undo the contract. This is usually the case when the mistake is a material one that goes to the heart of the contract or affects the parties' fundamental assumptions. However, not all mistakes may qualify for rescission, and the specific circumstances of each case will determine whether rescission is possible.

Question 13

Unilateral mistakes occur when only one party is mistaken about a material fact regarding the subject matter of the contract.

Accepted Answer

Unilateral mistakes occur when only one party is mistaken about a material fact regarding the subject matter of the contract.

Question 14

A unilateral mistake can be so serious that it results in an unconscionable contract.

Accepted Answer

A unilateral mistake refers to a mistake made by one party in a contract, which the other party is aware of, but does not correct. If the mistake is so serious that it results in an unconscionable contract, meaning the terms are so unfair that they shock the conscience, the contract may be deemed unenforceable.

Question 15

When fraudulent misrepresentation is used to induce another party to enter into a contract,the innocent party's assent to the contract is not genuine,and the contract is void.

Accepted Answer

A contract induced by fraudulent misrepresentation is voidable, not void, meaning the innocent party can choose to affirm or rescind the contract.

Question 16

Generally,a unilateral mistake does not allow either party to rescind the contract.

Accepted Answer

This is generally true because a unilateral mistake only affects one party, and it does not necessarily affect the mutual assent needed for a contract to be enforceable. However, there are some exceptions where a unilateral mistake may allow for rescission, such as if the mistake was caused by fraud, misrepresentation, or undue influence.

Question 17

A misrepresentation occurs when an assertion is made that is not in accord with the facts.

Accepted Answer

A misrepresentation is indeed an assertion that does not align with the truth or facts.

Question 18

One situation in which a contract may not be enforced due to a unilateral mistake is when a party makes a unilateral mistake of fact and the other party either knew or should have known that a mistake was made.

Accepted Answer

This is a correct statement as a unilateral mistake of fact can result in a contract being unenforceable if the other party knew or had reason to know of the mistake. This is based on the principle of fairness and preventing one party from taking advantage of another's mistake.

Question 19

A mutual mistake of value results in a void contract.

Accepted Answer

A mutual mistake of value does not void a contract; it typically involves a misunderstanding about the worth of the subject matter, not the nature of the agreement itself.

Question 20

A party may not rescind a contract if there has been a mutual mistake of a past or existing material fact.

Accepted Answer

A party may rescind a contract if there has been a mutual mistake of a past or existing material fact, as it affects the validity of the agreement.

Quiz 12: Genuineness of Assent and Statute of Frauds

To prove fraud,the following elements must be shown: 1)The wrongdoer made a false representation of a material fact; 2)The wrongdoer intended to deceive the innocent party; 3)The innocent party unjustifiably relied on the misrepresentation; and 4)The innocent party was injured.

Negligent misrepresentation is commonly referred to as fraudulent misrepresentation.

A mistake will never affect whether assent to a contract is genuine.

It is possible to commit a fraud by remaining silent and not saying anything.

A fraudulent misrepresentation made in order to receive a policy of life insurance may result in the company not having to pay on the policy.

An ambiguity in a contract cannot constitute a mutual mistake of a material fact.

In a contract situation involving fraud,the innocent party can either rescind the contract and obtain restitution,or enforce the contract and sue for contract damages.

If there has been a mutual mistake,the contract may be rescinded on the grounds that no contract has been formed because there has been no "meeting of the minds" between the parties.

Where two parties contract for the sale of an old violin,but neither party realizes that it is a rare and extremely valuable violin,this is a mutual mistake of fact allowing rescission.

A mutual mistake of fact is more likely to result in a party being able to rescind a contract than is a mutual mistake as to value.

A defense to the enforcement of a contract is that the assent of one or both of the parties to the contract was not genuine or real.

The law permits rescission of some contracts made in mistake.

Unilateral mistakes occur when only one party is mistaken about a material fact regarding the subject matter of the contract.

A unilateral mistake can be so serious that it results in an unconscionable contract.

When fraudulent misrepresentation is used to induce another party to enter into a contract,the innocent party's assent to the contract is not genuine,and the contract is void.

Generally,a unilateral mistake does not allow either party to rescind the contract.

A misrepresentation occurs when an assertion is made that is not in accord with the facts.

One situation in which a contract may not be enforced due to a unilateral mistake is when a party makes a unilateral mistake of fact and the other party either knew or should have known that a mistake was made.

A mutual mistake of value results in a void contract.

A party may not rescind a contract if there has been a mutual mistake of a past or existing material fact.