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Contract Misrepresentation And Mistakes
Summary
Shirley cannot rescind the contract because she did not rely on Joes misstatement. Bobs statements are opinion, not factual. Mutual mistakes can void contracts, unlike unilateral ones. Contracts may be voidable for good faith misrepresentations. Fraud allows for monetary damages, unlike misrepresentation. Astrologers prediction isnt a material fact. Concealment and nondisclosure differ in intent. Courts may reform contracts for mutual mistakes. Rescission must be timely. Misrepresentations with scienter or negligence make contracts voidable. Reward ads are unilateral offers. An option contract prevents offer revocation. Catalogs are negotiation invitations, not offers. Revocation is effective upon receipt. Auctions without reserve cant withdraw goods post-bid. Valid offers need intent, definiteness, and communication. UCC fills contract gaps. Not all contract terms are binding. Offers must be communicated to the intended offeree. Offers can be revoked before acceptance.Full Conversation
Sue wanted to purchase a car. She went to Honest Bob's used car sales. She was interested in a classic * Jaguar XK * roadster. Bob told her "this is a great car—it runs like a dream, it is a sweet ride." Bob's statements are legally considered to be
Group of answer choices
opinion statements.
material representations.
non-material representations.
fraudulent, if they are false.
Bob's statements such as "this is a great car—it runs like a dream, it is a sweet ride" are generally considered opinion statements. These kinds of statements are typically viewed as sales talk or puffery and not factual representations.
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Do you have any other questions or need more information about this topic?
Mutual mistake is more likely to make a contract voidable than is unilateral mistake.
Group of answer choices
True
False
True. In contract law, a mutual mistake, where both parties have a common but incorrect belief about a vital fact, can make the contract voidable. Unilateral mistakes, where only one party is mistaken, generally do not make a contract voidable unless the mistake is known or should have been known by the other party.
A contract may be voidable even if the person making the misrepresentation believes in good faith that what he/she says is true.
Group of answer choices
True
False
Case Rating: *
True. A contract may be voidable if the misrepresentation is material, even if the person making the misrepresentation believes it to be true in good faith. This is because the misled party relied on the false information to enter into the contract.
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True. A contract may be voidable if the misrepresentation is material, even if the person making the misrepresentation believes it to be true in good faith. This is because the misled party relied on the false information to enter into the contract.
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One of the differences between fraud and misrepresentation is
Group of answer choices
there is a requirement of materiality in fraud cases.
in fraud cases, the injured party has the option of suing for monetary damages.
misrepresentation requires scienter.
a false statement of opinion cannot be the basis for a claim of misrepresentation.
Case Rating: *
One of the differences between fraud and misrepresentation is:
- In fraud cases, the injured party has the option of suing for monetary damages.
Fraud involves intentional deceit, while misrepresentation can be made without intent to deceive. If you need more clarification or have other legal questions, feel free to ask!
One of the differences between fraud and misrepresentation is:
- In fraud cases, the injured party has the option of suing for monetary damages.
Fraud involves intentional deceit, while misrepresentation can be made without intent to deceive. If you need more clarification or have other legal questions, feel free to ask!
A world-renowned astrologer strongly asserted that the world will come to an end in *. Accordingly, Jim gave all his property in donation for the welfare of the poor. This is a misrepresentation of a material fact of a contract.
Group of answer choices
True
False
Case Rating: *
This situation involves a belief or prediction about a future event, which is not typically regarded as a material fact in contract law. Therefore, the statement made by the astrologer is not considered a misrepresentation of a material fact.
The answer is:
False
If you have any other questions or need more information, feel free to ask!
This situation involves a belief or prediction about a future event, which is not typically regarded as a material fact in contract law. Therefore, the statement made by the astrologer is not considered a misrepresentation of a material fact.
The answer is:
False
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Concealment involves the active hiding of a fact, while nondisclosure is the failure to volunteer information.
Group of answer choices
True
False
Case Rating: *
The statement "Concealment involves the active hiding of a fact, while nondisclosure is the failure to volunteer information" is:
True.
Concealment is actively hiding information, whereas nondisclosure is simply not sharing information voluntarily.
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The statement "Concealment involves the active hiding of a fact, while nondisclosure is the failure to volunteer information" is:
True.
Concealment is actively hiding information, whereas nondisclosure is simply not sharing information voluntarily.
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Jean agrees to lease Steven the fourth floor of his house. Jean himself resides on the second floor. The person typing the contract strikes the wrong key, and the contract reads the leased portion as the “second floor.” Neither Jean nor Steven notices this error when they read and sign the contract. What will the courts do in the case of a dispute?
Group of answer choices
Avoid the contract
Rescind the contract
Enforce the contract
Reform the contract
Case Rating: *
In this scenario, the contract might be subject to reformation. Reformation is used to correct a written agreement to reflect what the parties actually intended when there was a mutual mistake. This means the court will likely reform the contract to show that Steven leases the fourth floor, as both parties intended.
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In this scenario, the contract might be subject to reformation. Reformation is used to correct a written agreement to reflect what the parties actually intended when there was a mutual mistake. This means the court will likely reform the contract to show that Steven leases the fourth floor, as both parties intended.
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A party who has the right to rescind a contract may do so at any time.
Group of answer choices
True
False
Case Rating: *
False. A party who has the right to rescind a contract must do so within a reasonable time after discovering the grounds for rescission. Delaying too long may result in losing the right to rescind the contract.
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False. A party who has the right to rescind a contract must do so within a reasonable time after discovering the grounds for rescission. Delaying too long may result in losing the right to rescind the contract.
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Misrepresentations made with scienter make a contract void, while negligent misrepresentations make a contract voidable.
Group of answer choices
True
False
Case Rating: *
Answer: False
Misrepresentations made with scienter (intentional deceit) generally make a contract voidable, not void. Negligent misrepresentations also make a contract voidable. Both types of misrepresentation provide grounds for the misled party to rescind the contract, but they do not automatically void the contract.
Answer: False
Misrepresentations made with scienter (intentional deceit) generally make a contract voidable, not void. Negligent misrepresentations also make a contract voidable. Both types of misrepresentation provide grounds for the misled party to rescind the contract, but they do not automatically void the contract.
An advertisement offering a reward for the return of lost property usually is treated as an offer for a unilateral contract.
Group of answer choices
True
False
Case Rating: *
True. An advertisement offering a reward for the return of lost property is typically treated as an offer for a unilateral contract. This means that the contract is formed once the action of returning the lost property is completed.
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True. An advertisement offering a reward for the return of lost property is typically treated as an offer for a unilateral contract. This means that the contract is formed once the action of returning the lost property is completed.
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A(n) _____ is a separate contract in which an offeror agrees not to revoke her offer for a stated time in exchange for some valuable consideration.
Group of answer choices
offer
option
bid
advertisement
Case Rating: *
The correct term for the contract described is "option". An option is a separate contract in which the offeror agrees not to revoke the offer for a stated period in exchange for valuable consideration.
- Would you like more information on options or any other legal topic?
The correct term for the contract described is "option". An option is a separate contract in which the offeror agrees not to revoke the offer for a stated period in exchange for valuable consideration.
- Would you like more information on options or any other legal topic?
Chica, a women's fashion retailer, sends catalogs to its customers, who can then order from the catalog via phone or online. Donna decides to order a black dress priced at $*.*. Donna calls to place her order. The sales representative who answers the phone tells Donna that the black dress is no longer in stock. Under these facts
Group of answer choices
Chica is not liable for breach of contract.
Chica is liable for breach of contract.
Chica is liable for "bait and switch."
Chica is liable under a quasi-contract theory.
Case Rating: *
Chica is not liable for breach of contract. Catalogs are generally considered invitations to negotiate, not offers. Therefore, no contract was formed when Donna decided to order the dress.
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Chica is not liable for breach of contract. Catalogs are generally considered invitations to negotiate, not offers. Therefore, no contract was formed when Donna decided to order the dress.
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A revocation normally is effective at the time it is dispatched by the offeror.
Group of answer choices
True
False
Case Rating: *
False. A revocation is typically effective when it is received by the offeree, not when it is dispatched by the offeror.
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False. A revocation is typically effective when it is received by the offeree, not when it is dispatched by the offeror.
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Which of the following characterizes an auction “without reserve”?
Group of answer choices
Bidders must necessarily be merchants
Sellers must necessarily be merchants
Goods cannot be withdrawn after a call for bids has been made
Buyers are treated as having made an offer to sell
Case Rating: *
An auction "without reserve" is characterized by the following:
- Goods cannot be withdrawn after a call for bids has been made.
If you have any other legal questions or need further information, feel free to ask!
An auction "without reserve" is characterized by the following:
- Goods cannot be withdrawn after a call for bids has been made.
If you have any other legal questions or need further information, feel free to ask!
The three requirements for a valid offer are present intent to contract, definiteness, and communication to the offeree.
Group of answer choices
True
False
Case Rating: *
True. The three requirements for a valid offer are present intent to contract, definiteness, and communication to the offeree.
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True. The three requirements for a valid offer are present intent to contract, definiteness, and communication to the offeree.
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If a term is left open in a sale of goods contract, that open term or "gap" can be filled by inserting a presumption found in the UCC's "gap filling" rules.
Group of answer choices
True
False
Case Rating: *
True. The Uniform Commercial Code (UCC) allows for "gap filling" in contracts for the sale of goods. If certain terms are left open, the UCC provides default rules to fill those gaps, ensuring the contract remains enforceable.
Do you have any other legal questions or need more information on this topic?
True. The Uniform Commercial Code (UCC) allows for "gap filling" in contracts for the sale of goods. If certain terms are left open, the UCC provides default rules to fill those gaps, ensuring the contract remains enforceable.
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All terms of contracts, even "fine-print" terms of standard form contracts, are always part of the parties' deal and binding on them, because parties have an obligation to read their contracts and are assumed to have done so.
Group of answer choices
True
False
Case Rating: *
False. Not all terms in a contract, including "fine-print" terms, are automatically binding. Some may be unenforceable if they are deemed unconscionable or if they were not reasonably communicated to the party.
Do you have another legal question or need more information on this topic?
False. Not all terms in a contract, including "fine-print" terms, are automatically binding. Some may be unenforceable if they are deemed unconscionable or if they were not reasonably communicated to the party.
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Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true?
Group of answer choices
Kyle must sell Maggie his car unless Kyle is a merchant under the UCC.
There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie.
Kyle and Tara have a contract for the purchase of Kyle's car.
Maggie's letter is a valid acceptance of Kyle's offer.
Case Rating: *
There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. For a contract to be valid, the offer must be communicated to the person to whom it is directed, in this case, Tara. Maggie's acceptance is not valid as she was not the intended offeree.
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There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. For a contract to be valid, the offer must be communicated to the person to whom it is directed, in this case, Tara. Maggie's acceptance is not valid as she was not the intended offeree.
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When can the offeror effectively revoke his/her offer?
Group of answer choices
Only after an effective acceptance.
Only before an effective acceptance.
Only before payment for goods or services has been made.
Only before the parties have completed their obligations under the contract.
Case Rating: *
An offeror can effectively revoke his/her offer only before an effective acceptance. Once the offeree has accepted the offer, the offeror can no longer revoke it.
Would you like more information on offer revocation or have any other legal questions?
An offeror can effectively revoke his/her offer only before an effective acceptance. Once the offeree has accepted the offer, the offeror can no longer revoke it.
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