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Question
Often, when both parties to a contract are mistaken as to the same material fact, either party can rescind the contract.Answer
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Related questions
Q:
Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos's bid is significantly low. Any contract with AgriCo-op that includes the mistake may be rescindeda. if AgriCo-op knew or should have known of the mistake.b. if Lewis's supervisor did not know of the mistake.c. if Silos knew or should have known of the mistake.d. under no circumstances.
Q:
Jane and Phil enter into a contract, but make a bilateral mistake. For the contract to be rescinded by either party, the bilateral mistake must be about
a. a material fact.
b. value.
c. an opinion.
d. a prediction.
Q:
Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is a gold mine. A court would
a. cancel the contract due to Byron's failure to know the land's value.
b. cancel the contract due to Charity's failure to know the land's price.
c. cancel the contract due to the difference between the contract price and the market price.
d. enforce the contract.
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A contract entered into under undue influence is voidable.
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Intent to deceive is an element of fraud.
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Misrepresentation can occur by words or actions, but not by silence.
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Misrepresentation of a material fact cannot occur through conduct alone.
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A unilateral mistake always gives the mistaken party a right to relief from the contract.
Q:
Any party who does not receive what he or she considers a fair bargain can argue mistake.
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Eli, a minor, buys an automobile insurance policy from Faithful Insurance Company and pays a $1,000 premium. If Eli can disaffirm the contract, he can most likely recover
a. $500.
b. $1,000.
c. $1,500.
d. nothing.
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When a statute protects a certain class of people, a member of that class cannot enforce an illegal contract.
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In most illegal contracts, both parties are considered to be equally at fault, and neither party can enforce it or recover damages under it.
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An exculpatory clause in an employment contract is not enforceable if it removes the employer's potential liability for injuries to employees.
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A covenant not to compete is never enforceable.
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All states require that members of certain professions to have licenses.
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Any contract entered into with an unlicensed party is unenforceable.
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Gambling involves the distribution of property by chance among persons who have paid valuable consideration for the opportunity to receive it.
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Contracts entered into by mentally incompetent persons can be valid.
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A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.
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For a minor to disaffirm a contract, he or she must present the contract to a court.
Q:
When both parties to a contract are minors, both of them may disaffirm the contract.
Q:
Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra, in whose state Omni is not licensed to sell insurance. As a member of the class of persons protected by the statute, Petra can
a. do nothing with respect to the policy.
b. enforce the policy or recover the amount of the premiums paid.
c. only enforce the policy.
d. only recover the amount of the premiums paid.
Q:
Rolf is an emergency medical technician. Medical personnel such as Rolf are prohibited by state statute from working more than a certain number of consecutive hours. One month, Rolf works more than the legal limit. Rolf can recover for
a. the hours up to the statutory maximum but not more.
b. the hours up to the statutory maximum and the extra hours.
c. the hours up to the statutory maximum or the extra hours.
d. nothing.
Q:
Lucy, a minor, disaffirms a contract for necessaries without returning the goods. To Manny's Food Mart, the seller, Lucy is required to pay
a. nothing.
b. the reasonable value of the goods.
c. the sales price of the goods.
d. the ultimate worth of the goods.
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Twyla's dock is damaged in an accident caused by Ulric's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulric fails to pay, Twyla can bring an action for breach of contract. This agreement is
a. a covenant not to sue.
b. an accord and satisfaction.
c. unliquidated.
d. a release.
Q:
After an accident with a driver for Onyx Security Company, Paul signs a covenant not to sue Onyx for damages in a tort action if it pays for the damage to his car. This covenant
a. bars recovery only if Onyx pays.
b. is an illusory contract.
c. is barred by the preexisting duty rule.
d. is unconscionable.
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Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay. If Teatro offers no reason for the extra $250,000, but says only that it will stop work if it is not paid, the agreement isa. enforceable as the consideration is past.b. enforceable because of unforeseen difficulties.c. unenforceable as an illusory promise.d. unenforceable due to the preexisting duty rule.
Q:
Bridey defends against a suit for breach of contract by Continental Mortgage Company by claiming that their deala mortgage loan secured by Bridey's purchase of a housewas unfair because the consideration for their contract was inadequate.
The court is most likely to evaluate the adequacy of consideration if
a. one of the parties claims that they entered into an unwise contract.
b. something exchanged is not of direct economic or financial value.
c. the items exchanged are of unequal value.
d. there is a large disparity in the amount or value of the consideration exchanged.
Q:
Statutes of limitations in all states require a debtor to pay a debt within a specified period of time.
Q:
A covenant not to sue is against public policy.