Question 1

Dixon agrees to sell to Elmore,for $1,500,a remote parcel of land.They believe the land to be worthless,but beneath it is a shale rock containing oil.A court would​

Accepted Answer

The answer of Dixon agrees to sell to Elmore,for $1,500,a...

Question 2

Winona enters into a contract with Peyton to buy Peyton's land based on Peyton's assertion that the land is legally open to development.After the sale,Winona learns what Peyton knew previously-only a small section of the land can be built on.A local law prohibits construction on the rest of the property.Winona can​

Accepted Answer

The answer of Winona enters into a contract with Peyton...

Question 3

In La Junta,Carlos and Alvaro contract for the sale of five hundred head of Carlos's cattle for $95 per head.Unknown to either party,a unforeseen storm has struck the herd and many of the cattle have died.Alvaro is​

Accepted Answer

The contract is voidable due to mutual mistake, as both parties were unaware of the storm and the resulting loss of cattle.

Question 4

Fact Pattern 14-2 Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which Agri Co-op is seeking bids. Consequently, Silos's bid is significantly low.
-Refer to Fact Pattern 14-2.Any contract with Agri Co-op that includes the mistake may be rescinded​

Accepted Answer

If the mistake was made inadvertently and without gross negligence, the contract may be rescinded. However, if the mistake was made intentionally or negligently, the contract cannot be rescinded. Additionally, if the mistake was made intelligently but distractedly, it is still considered negligent and the contract cannot be rescinded.

Question 5

Fact Pattern 14-3 County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from James to Kate, the furnished information is mistaken.
-Refer to Fact Pattern 14-3.If James and Kate are both ignorant of the mistake,it is​

Accepted Answer

The answer of Fact Pattern 14-3 County Title Company processes information...

Question 6

Phoebe enters into a contract with Everest for a guided tour of Whitewater Canyon.Everest acts as though he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Phoebe is most likely a victim of​

Accepted Answer

Phoebe is most likely a victim of fraud because Everest misrepresented himself as an experienced and knowledgeable guide even though he has never been in the canyon. This misrepresentation induced Phoebe to enter into the contract, and she would not have done so if she had known the truth about Everest's experience.

Question 7

Camille,a tennis pro,convinces Dante,who has no athletic ability,that he has considerable skill and induces him to pay Camille $1,000 for tennis lessons.When Dante realizes the truth,he files a suit against Camille.Dante is most likely to recover on the basis of​

Accepted Answer

Camille's convincing Dante that he has considerable skill and inducing him to pay for tennis lessons is an act of fraud, which is a misrepresentation of a material fact made with knowledge of its falsity with the intent to deceive, causing the victim to rely on the misrepresentation and suffer damages. Dante can recover based on the grounds of fraud.

Question 8

Fact Pattern 14-2 Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which Agri Co-op is seeking bids. Consequently, Silos's bid is significantly low.
-Refer to Fact Pattern 14-2.Any contract with Agri Co-op that includes the mistake may be rescinded​

Accepted Answer

If Agri Co-op knew or should have known of the mistake, they will not be able to rescind the contract. However, if they did not have knowledge of the mistake, they may rescind the contract due to the mistake made by Lewis.

Question 9

Nora enters into a contract with Oceanic Transport,Inc.,to insure and ship a painting from France to the United States for a certain price.But Oceanic makes a mistake in adding the costs,which results in a contract price that is $1,000 less than the true cost.Most likely,a court would​

Accepted Answer

The answer of Nora enters into a contract with Oceanic...

Question 10

Fact Pattern 14-2 Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which Agri Co-op is seeking bids. Consequently, Silos's bid is significantly low.
-Refer to Fact Pattern 14-2.Any contract with AgriCo-op that includes the mistake may be rescinded​

Accepted Answer

A mistake in totaling the estimated costs for a project could be considered a material fact, as it could significantly affect the terms of the contract. Therefore, if the mistake involves a material fact, the contract may be rescinded.

Question 11

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant.Garland knowingly misrepresents a number of material features about the restaurant and the business.When Jules discovers the truth,he can​

Accepted Answer

Jules can rescind the contract on the basis of fraud since Garland knowingly misrepresented material features about the restaurant and the business which induced Jules to enter into the contract. Rescission is a remedy available for the victim of fraud. Option A is not valid because Jules did not assume the risk of being misled by Garland. Option C is not valid because rescission on the basis of mistake requires that the mistake be mutual or caused by one party's unilateral mistake with the other party knowingly taking advantage of it. Option D is not valid because there is no evidence in the scenario to indicate that Jules was subjected to undue influence.

Question 12

Fact Pattern 14-3 County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from James to Kate, the furnished information is mistaken.
-Refer to Fact Pattern 14-3.The contract between James and Kate that includes the mistake may be rescinded​

Accepted Answer

Rescission of a contract is possible if there is a mistake involving a material fact, which is a fact that is important to the agreement and would have influenced the parties' decision to enter into the contract.

Question 13

Kari,a real estate agent,assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City.Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity.Linc is most likely a victim of​

Accepted Answer

Kari knowingly made a false representation with the intention to deceive Linc into purchasing the property, which constitutes fraud. Linc relied on Kari's assurance and suffered harm as a result. Option A (opinion) suggests that Kari was expressing a subjective viewpoint, whereas she made a false statement. Option C (mistake) implies that both parties were mistaken about the property's characteristics, whereas Kari intentionally misled Linc. Option D (nothing) is not a viable option as Linc has suffered a loss.

Question 14

Fact Pattern 14-3 County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from James to Kate, the furnished information is mistaken.
-Refer to Fact Pattern 14-3.The contract between James and Kate that includes the mistake may be rescinded​

Accepted Answer

If the mistake concerns a basic assumption on which the contract was made, then the contract may be rescinded. A basic assumption is a fundamental assumption that is central to the transaction. In this scenario, the mistake in the furnished information regarding the transfer of title may constitute a basic assumption on which the contract was made, and therefore, the contract may be rescinded.

Question 15

In selling a 300-acre farm to Rural Land Investments,Inc.,Simone tells Rural's that the land "will be worth twice as much by next year." This is​

Accepted Answer

Simone's statement about the future value of the land is an opinion or prediction, not a factual assertion.

Question 16

Hank,a salesperson for Ideal Autos,promises Jennie a certain car will give her a "smooth ride." Hank offers a test drive,which Jennie de-clines.She buys the car but soon realizes its suspension is in poor condition.Jennie​

Accepted Answer

The answer of Hank,a salesperson for Ideal Autos,promises Jennie a...

Question 17

Gene sells a trail bike to Hollis without disclosing that the odometer,which reads 10,000 miles,was disconnected 90,000 miles ago.Gene is most likely liable for​

Accepted Answer

Gene intentionally failed to disclose important information regarding the condition of the bike, which constitutes fraud. Hollis would not have bought the bike or would have paid a different price if she had known the true mileage.

Question 18

Used Car Lot's salesperson Vic offers to sell Will,who is twenty years of age,a car about which Vic intentionally misrepresents its past use and repairs.In reliance on the misrepresentations,Will buys the car.To prove fraud in this transaction,Will does not have to show that​

Accepted Answer

Will's age is not relevant in proving fraud. However, Will must show that Vic intentionally deceived him (A), misrepresented material facts (B), and that he justifiably relied on those misrepresentations (D) to prove fraud.

Question 19

Gene,an accountant,convinces his client Lucille to sign a contract to invest her savings in 2Gether,a nonexistent social-networking Web site.There is clear and convincing evidence that Lucille did not act out of her free will.This is​

Accepted Answer

Undue influence occurs when one party exerts excessive pressure on another, overcoming their free will, often in a relationship where trust is involved.

Question 20

Garth owns two all-terrain vehicles (ATVs),worth $1,000 and $500,respectively.Helen agrees to buy "Garth's ATV" for $750.Garth believes,in good faith,that he is selling the $500 ATV.Helen believes,in good faith,that she is buying the $1,000 ATV.In this situation​

Accepted Answer

There is no valid contract in this situation because both parties were mistaken regarding which ATV was being sold. As a result, the terms of the agreement were not clear and there was no meeting of the minds, which are essential elements of a contract. Therefore, neither party is entitled to anything and both ATVs remain with Garth.

Quiz 14: Voluntary Consent

Dixon agrees to sell to Elmore,for $1,500,a remote parcel of land.They believe the land to be worthless,but beneath it is a shale rock containing oil.A court would

In La Junta,Carlos and Alvaro contract for the sale of five hundred head of Carlos's cattle for $95 per head.Unknown to either party,a unforeseen storm has struck the herd and many of the cattle have died.Alvaro is

Phoebe enters into a contract with Everest for a guided tour of Whitewater Canyon.Everest acts as though he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Phoebe is most likely a victim of

Camille,a tennis pro,convinces Dante,who has no athletic ability,that he has considerable skill and induces him to pay Camille $1,000 for tennis lessons.When Dante realizes the truth,he files a suit against Camille.Dante is most likely to recover on the basis of

Nora enters into a contract with Oceanic Transport,Inc.,to insure and ship a painting from France to the United States for a certain price.But Oceanic makes a mistake in adding the costs,which results in a contract price that is $1,000 less than the true cost.Most likely,a court would

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant.Garland knowingly misrepresents a number of material features about the restaurant and the business.When Jules discovers the truth,he can

Kari,a real estate agent,assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City.Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity.Linc is most likely a victim of

In selling a 300-acre farm to Rural Land Investments,Inc.,Simone tells Rural's that the land "will be worth twice as much by next year." This is

Hank,a salesperson for Ideal Autos,promises Jennie a certain car will give her a "smooth ride." Hank offers a test drive,which Jennie de-clines.She buys the car but soon realizes its suspension is in poor condition.Jennie

Gene sells a trail bike to Hollis without disclosing that the odometer,which reads 10,000 miles,was disconnected 90,000 miles ago.Gene is most likely liable for

Used Car Lot's salesperson Vic offers to sell Will,who is twenty years of age,a car about which Vic intentionally misrepresents its past use and repairs.In reliance on the misrepresentations,Will buys the car.To prove fraud in this transaction,Will does not have to show that

Gene,an accountant,convinces his client Lucille to sign a contract to invest her savings in 2Gether,a nonexistent social-networking Web site.There is clear and convincing evidence that Lucille did not act out of her free will.This is

Garth owns two all-terrain vehicles (ATVs) ,worth $1,000 and $500,respectively.Helen agrees to buy "Garth's ATV" for $750.Garth believes,in good faith,that he is selling the $500 ATV.Helen believes,in good faith,that she is buying the $1,000 ATV.In this situation