Chapter 8

Question 1

Explain innocent misrepresentation

Answer 1

A false statement believed to be true by the person making it (2) remedies are limited to rescission—puts both parties back into original position

Question 2

Explain what misrepresentation is

Answer 2

A false statement of fact that persuades someone to enter into a contract

Question 3

Explain what fraudulent misrepresentation is

Answer 3

A false statement made knowingly, without belief in its truth, or recklessly. (2) remedies include rescission or damages.

Question 4

Explain what negligent misrepresentation is

Answer 4

A false statement made carelessly (2) remedies can include damages.

Question 5

Explain what duress is

Answer 5

Coercion involving threats. Contracts made under duress are voidable.

Question 6

Explain what undue influence is

Answer 6

Subtle pressure from a person in a position of trust, making contracts voidable.

Question 7

Explain what unconscionable transactions are

Answer 7

Grossly unfair deals due to unequal bargaining power, which the court can set aside.

Question 8

Explain what a shared mistake is in terms of a contract

Answer 8

Both parties share the same incorrect belief about a fundamental aspect of the contract

Question 9

Explain what misunderstanding is in terms of a contract

Answer 9

Each party has different understanding of the contract terms.

Question 10

Explain what a one-sided mistake is in terms of a contract

Answer 10

Only one party is mistaken about the contract terms

Question 11

What does the Latin term “non est factum” mean?

Answer 11

It is not my act—meaning the mistake goes to the very nature of the document in terms of a contract

Question 12

Explain what Parole Evidence Rule is in terms of mistakes in contracts

Answer 12

Outside evidence will not change clear wording within a contract

Question 13

Explain what private of contract means

Answer 13

Contract can only affect parties to it or be enforced by parties to it or parties bound by it

Question 14

Explain what assignment is in terms of a contract

Answer 14

A person entitled to receive a benefit under a contract can transfer that benefit to a third party

Question 15

Give an example of assignment within a contract

Answer 15

A tenant assigns their lease to a third party, the third party can now enforce the lease terms against the landlord, despite not being the original contracting party.