Business Law I Ch. 6 test review

____ is the deliberate deception intended to secure an unfair or unlawful gain.

• Fraud

• Concealment

• Rescind

• Material fact

A ____ is a fact that is important; it matters to one of the parties.

• concealment

• material fact

• deception

• representation

____ is also called passive fraud or non disclosure, and it may be just as fraudulent as actively deceiving an innocent party.

• Material fact

• Agreement

• Concealment

• Element

____is an innocent statement that turns out to be false.

• Misrepresentation

• Fraud

• Loss

• Agreement

A ____ is an error on the part of one of the parties to the contract.

• undue influence

• unilateral mistake

• loss

• agreement

Sometimes both parties to a contract are mistaken about an important fact. This is known as ____.

• skills

• agreement

• bilateral mistake

• unilateral mistake

____ is overcoming a person's will by use of force or by threat of force or bodily harm.

• Voluntarily

• Mistake

• Voidable

• Duress

_____ consists of threats to a person's business or income that cause him or her to enter a contract without real consent.

• Economic duress

• Law

• Agreement

• Secure agreement

_____ occurs when a person uses unfair and improper persuasive pressure to force another person to enter into an agreement.

• A valid contract

• Undue influence

• Deliberate

• Concealment

True or False: You are bound to a contract that you signed even if you don't read it.

• True

• False