Chapter 15

Question 1

Voluntary Consent

Answer 1

Knowing + willingly agreeing to the contract terms

Question 2

A contracultural mistake must be…

Answer 2

A mistake of fact; a factual mistake

Question 3

Unilateral mistake

Answer 3

A mistake that occurs when 1 party is mistaken about a material fact

Question 4

A unilateral mistake is enforceable unless..

Answer 4

1. The other party knows/should’ve known about the mistake
2. The mistake was an unintentional mathematical miscalculation

Question 5

Bilateral mistake

Answer 5

A mistake that occurs when both parties were mistaken about the same thing

Question 6

If its a bilateral mistake, the contract can be…

Answer 6

Rescinded, or revoked by either party

Question 7

If one or both parties reasonably interprets a contract term differently…

Answer 7

The contract can be rescinded b/c no “true meeting of the minds” was present

Question 8

If a mistake concerns the future value/quality of the object of the contract, is the contract still enforceable?

Answer 8

Yes, a mistake of value will have no effect on the contract b/c the value is always changing

Question 9

Can a person avoid a contract if they were fraudulently induced into it?

Answer 9

Yes, b/c they didn’t voluntary consent to the terms

(Fraudulent Misrepresentation)

Question 10

Are statements of opinion + predictions subject to claims of fraud?

Answer 10

No

Question 11

The innocent party can be entitled to _________ when a naive purchaser relies on an expert’s opinion

Answer 11

Recession or reformation

Question 12

Misrepresentation of law doesn’t entitle a party relief from a contract unless…

Answer 12

The misrepresenting party knows more about the law than an average person would know

Question 13

A party isn’t obligated to disclose facts in court unless…

Answer 13

1. The seller knows of a serious problem a buyer wouldn’t know otherwise (ex: defects)
2. The parties are in a fiduciary relationship, where material facts must be disclosed, otherwise it’s fraud

Question 14

Scienter

Answer 14

Knowledge by the misrepresenting party that material facts have been falsely represented/omitted w/ an intent to deceive

Question 15

Undue influence

Answer 15

Persuasion that’s more advice than actual force that induces a person to act according to the dominating party

No voluntary consent -> voidable

Question 16

Using threats or blackmail to pressure a party into entering a contract they wouldn’t have otherwise is…

Answer 16

Duress