Quiz 15: Capacity and Consent
This is a case of undue influence. In jurisprudence, undue influence is an equitable doctrine in which one person takes advantage of other person by the means of position of power. If a contract is proved under undue influence, it is voidable by the innocent party and is rescission as per remedy. To prove undue influence if the injured party must establish, 1. A trusting or dominating relationship between the two parties, 2. Improper persuasion by the stronger party, 3. An innocent misrepresentation, but the person will not be able to rescind, and 4. Neither fraud nor an innocent misrepresentation. So, in the given case if Bo and Ba mutually agreed on the agreement, then there would be no case of fraud. However if the above condition are proved then Bo can be held guilty.
Restitution in case of minor contract is explained below: A minor can disaffirm a contract in case of consideration he has committed or received to extend in the contract deed. This restoring the other party to its original position is termed as restitution. Decision regarding the case issue is explained below: In this case, T is entitled to get his money from M. In certain states practicing the majority rule conveys that a minor is permitted to reserve a contract. And he can get the full refund of his money, even if he is incapable to make restitution. This is fair, because M can refuse a contract with a minor.
Conscious uncertainty is explained below: Conscious uncertainty refers where a seller cannot promise for an uncertain event or happening in the contract. The buyer and the seller cannot withdraw the contract. In this contract, the parties do not know the quality of the thing being exchanged. Here, K cannot rescind from the contract after knowing that the ring was costly and valuable. Therefore, K will lose the contract and could not sue L. Hence, Option is correct. Likewise, In conscious uncertainty, it is not allowed when one of the parties knows he\she is taking on a risk. But Option A provides the information that K can sue to cancel the contract for fraudulent activity. Therefore, Option A is incorrect. In conscious uncertainty, the buyer and seller cannot withdraw the contract. But Option B provides the information that K can win if the contract is sued on the basis of mutual mistake. Therefore, Option B is incorrect. In conscious uncertainty, the buyer and seller cannot withdraw the contract. But Option C provides the information that K can win if the contract is sued on the basis of unilateral mistake. Therefore, Option C is incorrect.