Chapter 14

Question 1

The age at which an individual is considered legally capable of conducting himself or herself responsibly

Answer 1

Age of majority

Question 2

The legal avoidance or setting aside of a contractual obligation

Answer 2

Disaffirmance

Question 3

Minor who is freed of parental control U

Answer 3

Emancipated

Question 4

When a minor chooses to disaffirm a contract he or she can choose which parts of the contract

Answer 4

No must disaffirm all not merely a portion

Question 5

A usurious contract involves

Answer 5

An illegally high interest rate

Question 6

Gambling is

Answer 6

The creation of risk for the purpose of assuming it

Question 7

Courts generally presume contractual capacity.

t or f

Answer 7

T

Question 8

If a mistake concerns the future market value or quality of the object of the contract the mistake is one of VALUE and….

Answer 8

The contract is typically enforceable

Question 9

Why contracts are enforceable despite mistakes of value.

Answer 9

Value is variable depending on time, place and other circumstances

Question 10

In the case of fraudulent misrepresentation the innocent part can either rescind the contract or enforce the contract and seek damages for any harms resulting from the fraud

Answer 10

True!

Question 11

Elements typically needed for fraudulent misrepresentation

Answer 11

1. Misrepresentation of material fact must occur
2. Must be intent to deceive
3. innocent party must justifiably rely on the misrepresentation
4. To collect damages, a party must have been harmed as a result of the misrepresentation

Question 12

Misrepresentation can occur by

Answer 12

Words

Or actions

Question 13

Misrepresentation by conduct

Answer 13

Also Occurs when a party takes specific action to conceal a fact that is material to the contract

Question 14

Statements of opinions and representation of future facts are generally ….

Answer 14

Not subject to claims of fraud

Question 15

When a naïve purchaser relies on an opinion for an expert the innocent party may be

Answer 15

Entitled to revision or reformation

Question 16

Misrepresentation of law.

Answer 16

Generally does not entitle a party to relief because people are assumed to know state and local laws

Question 17

When misrepresentation of law does entitle a party to relief

Answer 17

When the misrepresenting party is in a profession that requires a greater knowledge of the law than an average citizen.
This constitutes fraud

Question 18

Misrepresentation by silence

Answer 18

Most of the time party’s do not have to volunteer pertinent info. But the cannot misrepresent, and they DO have a duty to disclose LATENT DEFECTS ( defects that could not readily be ascertained)

Question 19

People in a fiduciary relationship

Must disclose material facts. Failure to do so may constitute?

Answer 19

Fraud

Question 20

What signifies intent To deceive?

Answer 20

“Guilty knowledge”

Knowledge on the part of the misrepresenting party that the facts have been falsely represented

SCIENTER