Question 1

Intentional misrepresentation is commonly referred to as ________.

Accepted Answer

Intentional misrepresentation is commonly referred to as fraud, where one party deliberately provides false information to another.

Question 2

________ refers to the knowledge that a representation is false.

Accepted Answer

Scienter refers to the knowledge that a representation is false, often used in legal contexts to demonstrate that a party had the intent to deceive.

Question 3

John feels that Matt defrauded him in the sale of a used car and wants to sue him. For John to succeed in court he will have to prove that Matt ________.

Accepted Answer

For John to succeed in a fraud lawsuit, he must prove that Matt made a false representation of a material fact. This means Matt presented false information about something significant to the transaction that influenced John's decision to buy the car.

Question 4

The doctrine of undue influence, by which a court may permit the rescission of a contract, is a(n) ________ doctrine.

Accepted Answer

The doctrine of undue influence is an equitable doctrine, allowing courts to provide remedies that are fair and just, such as rescinding a contract, when one party has been unfairly influenced by another.

Question 5

In a situation involving undue influence, the party who takes advantage of another person's mental, emotional, or physical weakness to unduly persuade that person to enter into a contract is called the ________.

Accepted Answer

The term "dominant party" refers to the individual or entity in a position of power or influence over another, often used in the context of undue influence where this party may exploit their position to unduly persuade or coerce the other party into a contract or agreement.

Question 6

In a situation involving undue influence, the party who is unduly persuaded to enter into a contract due to their mental, emotional, or physical weakness is called the ________.

Accepted Answer

The servient party is the one who is unduly persuaded or coerced into entering a contract due to their vulnerable state, making them susceptible to undue influence by the dominant party.

Question 7

Jonas enters into an oral contract with Chelsea to lease his house to her for $100,000. Chelsea pays him $100,000 and moves in. A month later, Jonas learns that his state requires contracts for the lease of goods with payments of $1,000 or more to be in writing. Which of the following options does either party have?

Accepted Answer

The contract between Jonas and Chelsea has already been executed, with Chelsea paying the $100,000 and moving into the house. This execution makes the contract enforceable despite the lack of a written agreement, as actions taken by both parties demonstrate their commitment to the terms of the contract. The Statute of Frauds requires certain contracts to be in writing, but once a contract is fully executed, it generally cannot be rescinded simply because it was not in writing.

Question 8

Section 2-201(1) of the ________ is the basic Statute of Frauds provision for sales contracts.

Accepted Answer

Section 2-201(1) of the Uniform Commercial Code (UCC) is the provision that outlines the Statute of Frauds for sales contracts, requiring certain contracts to be in writing to be enforceable.

Question 9

The term ________ refers to any oral or written words outside the four corners of a written contract.

Accepted Answer

The term "parol evidence" refers to any oral or written words outside the four corners of a written contract, which is used in legal contexts to address evidence or agreements not included in the written document.

Question 10

Under the Statute of Frauds, any contract that transfers an ownership interest in real property must be in writing to be enforceable. Describe what is meant by "real property"for purposes of the Statute of Frauds.

Accepted Answer

The answer of Under the Statute of Frauds, any contract...

Question 11

An obligee who transfers a right is known as a(n) ________.

Accepted Answer

An obligee who transfers a right is known as an assignor. This term specifically refers to the party in a contract or agreement who transfers their rights or benefits to another party, known as the assignee.

Question 12

After signing his latest contract, professional basketball star Michael James contracted with MacMansion Construction to build a $1 million home for his mother. If MacMansion Construction fails to build the home, can Michael James' mother sue MacMansion?

Accepted Answer

Michael James' mother can sue MacMansion Construction because she is an intended third-party beneficiary of the contract between Michael James and MacMansion Construction. Contracts made for the benefit of a third party allow that party to sue for enforcement.

Question 13

After signing his latest contract, professional basketball star Michael James contracted with MacMansion Construction to build a $1 million home for his mother. Home developer Eric Muldoon purchased all of the lots surrounding the lot where James' mother's home would be built, figuring that the James house would increase the value of all of the real estate in the neighborhood. If MacMansion Construction fails to build the home, can Eric Muldoon sue MacMansion?

Accepted Answer

Eric Muldoon can be considered an incidental beneficiary because he benefits indirectly from the contract between Michael James and MacMansion Construction. Incidental beneficiaries do not have the legal standing to sue for the enforcement of a contract, as their benefit from the contract was not the intent of the parties involved.

Question 14

In general, third parties do not acquire any rights under other people's contracts. Two exceptions include those for ________.

Accepted Answer

Assignees and intended third-party beneficiaries are exceptions to the general rule that third parties do not acquire rights under other people's contracts. Assignees are parties to whom contract rights have been transferred, while intended third-party beneficiaries are those for whom the contract was specifically intended to benefit.

Question 15

A ________ is an unconditional promise to perform.

Accepted Answer

A covenant is an unconditional promise to perform, typically found in contracts and legal agreements, where one party pledges to do something for the other.

Question 16

Contract language such as if, on condition that, provided that, when, after, and as soon as indicate a(n) ________.

Accepted Answer

These terms introduce conditions in a contract, specifying circumstances under which obligations or rights become effective.

Question 17

An agreement whereby the parties agree to settle a contract dispute by accepting something different than in the original contract, and the subsequent performance of this agreement, is called a(n) ________.

Accepted Answer

An accord and satisfaction is a legal agreement between parties to settle a dispute by both agreeing to accept terms that differ from the original contract. The "accord" is the agreement to settle the dispute, and the "satisfaction" is the execution of that agreement.

Question 18

An accord, by itself, does not discharge the original contract. The accord ________ the original contract until the accord is performed, i.e., satisfaction.

Accepted Answer

An accord suspends the obligations under the original contract until the accord is performed, which is referred to as satisfaction. This means the original contract's obligations are temporarily put on hold, not terminated or replaced, until the terms of the accord are fulfilled.

Question 19

Satisfaction of an accord discharges ________.

Accepted Answer

Satisfaction of an accord discharges both the accord and the original contract because the accord is an agreement to discharge a preexisting obligation, and its satisfaction means that the new agreement has been fulfilled, thereby also settling the original obligation.

Question 20

If an accord is not satisfied when it is due, the aggrieved party may ________.

Accepted Answer

When an accord (an agreement to settle a debt or obligation) is not satisfied, the aggrieved party has the option to enforce either the accord itself or the original contract. This provides flexibility in seeking remedy for the breach.

Quiz 10: Performance and Breach of Contracts