Olive, the owner of Olive's Orchard, contracts to sell its harvest to Pure Foods, Inc. Later Olive refuses to perform. Pure Foods files a suit to enforce the contract. Olive and Pure Foods are in a state that does not recognize the doctrine of unconscionability. To defend successfully against enforcement of the contract on similar grounds, Olive might rely on traditional notions of
A) fraud.
B) materiality.
C) mistake.
D) value.

Question

Olive, the owner of Olive's Orchard, contracts to sell its harvest to Pure Foods, Inc. Later Olive refuses to perform. Pure Foods files a suit to enforce the contract. Olive and Pure Foods are in a state that does not recognize the doctrine of unconscionability. To defend successfully against enforcement of the contract on similar grounds, Olive might rely on traditional notions of
A) ​fraud.
B) ​materiality.
C) ​mistake.
D) ​value.

Quizplus · Accepted Answer

Since Olive's state does not recognize unconscionability, traditional contract defenses would apply. One such defense would be fraud, which involves intentional misrepresentation or concealment of material facts with the intent to induce another party to enter into a contract. Therefore, choice A is the best option.

Olive, the Owner of Olive's Orchard, Contracts to Sell Its