Question 1

Altering contract terms to reflect the true intentions of the parties is a rescission.

Accepted Answer

Altering contract terms to reflect the true intentions of the parties is not a rescission. Rescission involves terminating a contract altogether, while altering contract terms is typically done through an amendment or modification to the existing contract.

Question 2

A contract is always enforceable even if one party is aware that the other party made a mistake of fact.

Accepted Answer

False

Question 3

Even if an obvious, significant clerical error exists in a written contract, the contract is enforceable.

Accepted Answer

If an obvious, significant clerical error exists in a written contract, the contract may be voided or reformed by a court.

Question 4

A mistake of fact cannot be unilateral.

Accepted Answer

A mistake of fact can be unilateral or shared by both parties. A unilateral mistake of fact occurs when one party is mistaken about a fact, and the other party knows or has no reason to know about the mistake. In contrast, a shared mistake of fact occurs when both parties are mistaken about a fact.

Question 5

If the subject matter of a contract turns out to be more valuable than one of the parties believed it would be, that party can rescind the contract.

Accepted Answer

This statement is false. A party cannot rescind a contract just because the subject matter turns out to be more valuable than they believed it would be. Valuation of the subject matter is the responsibility of the parties before signing the contract, and once the contract is signed, both parties are bound by its terms.

Question 6

A mistake of fact cannot be bilateral.

Accepted Answer

A mistake of fact can be bilateral, meaning both parties are mistaken about a certain fact in a contract or agreement.

Question 7

To reform a contract is to cancel it.

Accepted Answer

To reform a contract is to make changes or modifications to the existing agreement, not to cancel it altogether.

Question 8

A mistake in value will usually enable a party to a contract to avoid it.

Accepted Answer

A mistake in value alone is not enough to enable a party to avoid a contract. Only a mistake in a material fact that goes to the essence of the contract, such as the identity of the subject matter, can usually allow a party to avoid the contract.

Question 9

A mistake in judgment as to value is a ground to avoid a contract.

Accepted Answer

A mistake in judgment as to value is not a ground to avoid a contract. It only becomes a ground if there is a mistake in a material fact, such as the quality or quantity of the subject matter of the contract.

Question 10

A general contractor who knows that a subcontractor's bid is a mistake cannot enforce the bid.

Accepted Answer

This is because the general contractor has a duty to point out any mistakes or errors in the subcontractor's bid before accepting it. If the general contractor accepts the bid despite knowing it is a mistake, it can be seen as taking advantage of the subcontractor and the bid cannot be enforced.

Question 11

If a price quotation contains a mistake in the adding of a number of fig?ures, the contract may not be enforceable.

Accepted Answer

If a price quotation contains a mistake in the adding of a number of figures, it could result in a significant difference in the total amount due. In some cases, this mistake may make the contract unenforceable as it can be argued that there was no mutual agreement on the terms of the contract.

Question 12

A general contractor who suspects that a subcontractor's bid is a mis?take can still enforce the bid.

Accepted Answer

A general contractor cannot enforce a subcontractor's bid if it is known to be a mistake, as this would be considered taking advantage of an error, which is not permissible under contract law principles.

Question 13

If the parties to a contract attach materially different meanings to a con?tract term, the contract cannot be rescinded.

Accepted Answer

If the parties attach materially different meanings to a contract term, it can result in a mutual mistake, which is a ground for rescission. However, this would depend on the specific circumstances and the applicable law.

Question 14

An innocent party may seek damages for a fraudulent contract.

Accepted Answer

An innocent party who is deceived by a fraudulent contract may seek damages in court. The party may be entitled to damages for any losses suffered as a result of the fraud, including compensatory damages, consequential damages, and even punitive damages in some cases.

Question 15

Reliance on an "expert's" statement of opinion may be the basis for an ac?tion based on fraud.

Accepted Answer

Reliance on an expert's statement of opinion may be the basis for an action based on fraud if the expert knowingly made a false statement or concealed material facts. The plaintiff must also show that they suffered damages as a result of relying on the fraudulent statement.

Question 16

Misrepresentation of a material fact is an element of fraud.

Accepted Answer

Misrepresentation of a material fact is an essential element of fraud, along with intent to deceive, justifiable reliance on the misrepresentation, and damages suffered as a result.

Question 17

Overestimating the value of an object is a mistake for which a court will normally provide relief.

Accepted Answer

Overestimating the value of an object is not a mistake that a court will provide relief for. It is the responsibility of the buyer to do their own research and determine the value of the object before making a purchase.

Question 18

A statement of opinion is generally subject to a claim of fraud.

Accepted Answer

A statement of opinion is subjective and based on personal beliefs, therefore it cannot be proven true or false. As a result, it is not usually subject to fraud claims unless it is made with the intent to deceive or mislead.

Question 19

An innocent party can rescind a fraudulent contract.

Accepted Answer

An innocent party can rescind a fraudulent contract.

Question 20

An innocent party can enforce a fraudulent contract.

Accepted Answer

Even if a contract is fraudulent, the innocent party can still enforce it in court. However, they may have the option to rescind or void the contract if they were deceived or misled.

Quiz 14: Mistakes, Fraud, and Voluntary Consent

Altering contract terms to reflect the true intentions of the parties is a rescission.

A contract is always enforceable even if one party is aware that the other party made a mistake of fact.

Even if an obvious, significant clerical error exists in a written contract, the contract is enforceable.

A mistake of fact cannot be unilateral.

If the subject matter of a contract turns out to be more valuable than one of the parties believed it would be, that party can rescind the contract.

A mistake of fact cannot be bilateral.

To reform a contract is to cancel it.

A mistake in value will usually enable a party to a contract to avoid it.

A mistake in judgment as to value is a ground to avoid a contract.

A general contractor who knows that a subcontractor's bid is a mistake cannot enforce the bid.

If a price quotation contains a mistake in the adding of a number of fig?ures, the contract may not be enforceable.

A general contractor who suspects that a subcontractor's bid is a mis?take can still enforce the bid.

If the parties to a contract attach materially different meanings to a con?tract term, the contract cannot be rescinded.

An innocent party may seek damages for a fraudulent contract.

Reliance on an "expert's" statement of opinion may be the basis for an ac?tion based on fraud.

Misrepresentation of a material fact is an element of fraud.

Overestimating the value of an object is a mistake for which a court will normally provide relief.

A statement of opinion is generally subject to a claim of fraud.

An innocent party can rescind a fraudulent contract.

An innocent party can enforce a fraudulent contract.