Chapter 7 - Genuine Assent pg. 3/4 study guide

What constitutes a misrepresentation in a contract?

• A statement of future intent

• A statement of personal opinion

• A statement of fact that is untrue or actively concealed

• A general advertisement or sales pitch

Which of the following is NOT typically considered a statement of fact in a misrepresentation claim?

• "The engine was rebuilt 7,000 miles ago."

• "This car runs perfectly."

• "The property value will increase by 15% annually."

• "This cola is the best tasting on the market."

What action would be considered active concealment in a real estate transaction?

• Providing a detailed history of the property's previous owners

• Covering up a leak stain on the ceiling with new paint

• Offering a warranty for repairs

• Giving a verbal assurance about the house's condition

What can a party do if they discover a misrepresentation in a contract?

• They must accept the contract as is.

• They can request a price reduction but cannot void the contract.

• They can seek to void the contract.

• They can renegotiate the terms of the contract.

In the context of misrepresentation, which of the following statements is generally considered an opinion rather than a statement of fact?

• "The product has been tested and proven effective."

• "The roof was replaced two years ago."

• "The property value has increased by 20% in the last year."

• "This cola is the best tasting on the market."

Compare duress and undue influence in terms of their impact on a contract. (Sec. 7.1)

• Duress involves physical threats, while undue influence involves mental pressure.

• Duress and undue influence both involve physical threats.

• Duress and undue influence have no impact on a contract.

• Duress involves mental pressure, while undue influence involves physical threats.

What must happen for an avoidance of a contract to be effective? (Sec. 7.1)

• A written notice must be given.

• Both parties must agree.

• A court order is required.

• The contract must be signed again.

What is a key element required to prove undue influence in a contract? (Sec. 7.1)

• A relationship of trust

• A written agreement

• A financial transaction

• A witness testimony

Identify the difference between a unilateral mistake and a mutual mistake.

• A unilateral mistake involves one party, while a mutual mistake involves both parties.

• A unilateral mistake involves both parties, while a mutual mistake involves one party.

• Both unilateral and mutual mistakes involve only one party.

• Both unilateral and mutual mistakes involve both parties.

How is a misrepresentation typically treated under the law? (Sec 7.2)

• It is ignored.

• It is treated as a breach of contract.

• It is considered a criminal offense.

• It can lead to the contract being voided.