Unit 2: Contracts (Vitiating, Termination of Offer & Contract)

A and B, being traders, enter upon a contract. A has private information of a change in prices which would affect B’s willingness to proceed with the contract. A is not bound to inform B.

• True

• False

A agrees to buy a certain horse from B. It turns out that the horse was dead at the time of the bargain, though neither party was aware of the fact. The agreement is void.

• True

• False

A false opinion may also be considered as a misrepresentation actionable by law.

• True

• False

A Vitiating factor is a factor that can affect the validity of a contract.

• True

• False

Which of the following is NOT a Mistake?

• Common

• Mutual

• Unilateral

• Fraudulent

When there is a presence of the vitiating factor of 'Mistake' in a contract, this contract is ____________.

• Void

• Voidable

When one party makes a mistake, which the other person knows of or must be taken to know of is considered a _______________.

• Common

• Mutual

• Unilateral

A customer goes to the sample room of an interior decorator to select a carpet and asks the clerk to show him a navy carpet, which he purchases. The sales slip notes that the carpet purchased is navy. When, upon examining the carpet in daylight, the customer discovers that it is black, not navy as he thought when he bought it, a _______________ mistake would have occurred,

• Mutual

• Common

• Unilateral

Misrepresentation may make a contract ____________________.

• Void

• Voidable

A seller unknowingly offering defective merchandise to a customer.

• Fradululent Misrepresentation

• Negligent Misrepresentation

• Innocent Misrepresentation