Deck 9: Mutual Agreement

Question 1

If agreement of either party is ?obtained by fraud, misrepresentation, mistake, undue influence, or duress, or if the contract is one of adhesion, or is unconscionable, a(n):

A) executed contract results.
B) valid contract results.
C) void contract results.
D) voidable contract results.

Answer 1

D

Question 2

For a contract to be dissolved because of a mistake, the law usually requires that only one of the parties has to be part of the mistake.

Answer 2

False

Question 3

A physician may have the power to control the actions of his patients because of a special or confidential relationship.

Answer 3

True

Question 4

The "take-it-or-leave-it" contracts, known as contracts of adhesion, are quite common and are normally unenforceable.

Question 5

Courts have long been reluctant to uphold unconscionable contracts, but recently the UCC has made such contracts more likely to be enforced.

Question 6

Genuineness, or reality, of agreement is said to be present in a contract when there is:

A) a true meeting of minds.
B) knowledge of falsity.
C) puffing.
D) duress.

Question 7

Genuineness, or reality of an agreement, is said to be present in a contract when there is a true meeting of the minds.

Question 8

The unintentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party amounts to:

A) fraud.
B) duress.
C) misrepresentation.
D) mistake.

Question 9

A fraud charge can be proven only if it is available in writing, but not if it is spoken or by acts or conduct.

Question 10

In the eyes of the law, a misrepresentation is a belief that is not in accord with the facts.

Question 11

Undue influence is the act of applying unlawful or improper pressure or influence to a ?person in order to gain his agreement to a contract.

Question 12

If an injured party in a lawsuit can prove only misrepresentation, the contract can be canceled and the injured party can also sue for additional damages.

Question 13

Puffing is considered a mere expression of opinion that refers to generalities.

Question 14

Intentional concealment or intentional nondisclosure of material facts is just as fraudulent as making false statements.

Question 15

For the injured party to claim fraud, he or she must prove all of the following of the statements or acts EXCEPT that it:

A) was a misstatement or nondisclosure of a material fact.
B) was made with knowledge of its falsity or with reckless disregard of its truth.
C) was relied on by the injured party.
D) was not intended to cause the other party to enter into the agreement.

Question 16

Mistakes relating to contracts may be concerned with the nature of the subject matter or the quality of the subject matter.

Question 17

A misdemeanor is the intentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party.

Question 18

When the misstatement is made knowingly or recklessly, it amounts to:

A) fraud.
B) mistake.
C) misrepresentation.
D) duress.

Question 19

A person who has power and abuses it to control the actions of another person on the basis of a special or confidential relationship commits fraud.

Question 20

The pressure under duress only takes the form of a threat of bodily harm to an individual or to his family, but not the threat of serious loss or damage to his property.

Question 21

A contract resulting from the use of undue influence is:

A) considered a mistake.
B) .fraudulent
C) void.
D) voidable.

Question 22

For a contract to be dissolved because of a mistake, the law usually requires that the mistake be:

A) mutual.
B) unilateral.
C) intentional.
D) a belief about what might happen in the future.

Question 23

If the mistake in the contract is made by both parties then it amounts to:

A) mutual mistake.
B) unilateral mistake.
C) intentional mistake.
D) conditional mistake.

Question 24

Contracts that are shockingly unfair and unjust are known as:

A) unconscionable contracts.
B) unrequited contracts.
C) inadequate contracts.
D) contracts of adhesion.

Question 25

While courts have long been reluctant to uphold ?unconscionable contracts, more recently, however, the UCC has:

A) made such contracts less likely to be enforced.
B) required such contracts to be reduced to writing.
C) encouraged the agreement of such contracts.
D) made such contracts more likely to be enforced.

Question 26

Puffing is also considered:

A) a mistake.
B) dealer's talk.
C) misrepresentation.
D) fraud.

Question 27

An injured party who can successfully prove misrepresentation only has the remedy to:

A) claim specific performance.
B) cancel the contract.
C) accept the contract.
D) bring suit for damages.

Question 28

Insurance policies may be classified as contracts of:

A) service.
B) adhesion.
C) duress.
D) undue influence.

Question 29

Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person. If this power is improperly used to his or her personal advantage, then it amounts to:

A) mistake.
B) misrepresentation.
C) undue influence.
D) duress.

Question 30

When threats are used to force someone to enter into a contract, the agreement may be dissolved by:

A) the ?injured party.
B) the person using undue influence.
C) a third party.
D) the mistaken party.

Question 31

Randolf, a wealthy connoisseur of arts, was invited to an art exhibition. He became very interested in one of the showcased art exhibits, and approached the manager to buy the piece. While he was interested in the painting of the catalogue number 1201, the art gallery's manager mistakenly assumed he was interested in another piece. When it was the time to complete the transaction, the manager realized that he had instead sold and delivered the wrong painting, and immediately clarified this with Randolf. In this instance, the contract can be canceled by either party for:

A) mutual mistake.
B) unilateral mistake.
C) negligence.
D) misrepresentation.

Question 32

Contracts that involve parties of unequal bargaining power are often considered:

A) unconscionable.
B) unforgivable.
C) inadequate.
D) contracts of adhesion.

Question 33

Court decisions involving mistakes in contracts are often complex and the courts attempt to determine whether the mistake was:

A) intentional.
B) unintentional.
C) unilateral or mutual.
D) unilateral and misrepresented.

Question 34

The law makes it clear that the mistaken belief must ?concern a(n):

A) precedent.
B) existing fact.
C) belief.
D) overruled law.

Question 35

The unintentional misstatement or nondisclosure of a material fact that results in inducing another to enter into an agreement to his or her loss is known as:

A) fraud.
B) duress.
C) mistake.
D) misrepresentation.

Question 36

If the mistake in the contract is made by only one party, then it amounts to:

A) mutual mistake.
B) intentional mistake.
C) unilateral mistake.
D) conditional mistake.

Question 37

Checkroom and luggage receipts are examples of:

A) simple contracts.
B) contracts of adhesion.
C) unconscionable contracts.
D) expressed contracts.

Question 38

The act of applying unlawful or improper pressure or influence to a person in order to gain his or her agreement to a contract is known as:

A) fraud.
B) duress.
C) undue influence.
D) mistake.

Question 39

All of the following are fraudulent except:

A) false statements.
B) puffing.
C) intentional concealment.
D) intentional nondisclosure.

Question 40

Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person. Such relationships are found in all of the following, EXCEPT that of a(n):

A) employer and an employee.
B) physician or nurse and a patient.
C) attorney and a client.
D) client and vendor.

Question 41

What is an "unconscionable contract," and what are the court's options when handling one?

Question 42

Explain what amounts to a "contract of adhesion."

Question 43

When the UCC was written, it was intended that an unconscionable clause would apply only to:

A) written contracts.
B) leasing an apartment.
C) the sale of goods.
D) opening a checking account.

Question 44

Explain how defective agreements can occur.