Often a Party to a Contract Wants to Avoid His

question 157

Multiple Choice

Often a party to a contract wants to avoid his obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress. Which of the following is false with regard to these areas of the law?

• A) A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that his misrepresentation, which persuaded the buyer to buy, was true.
• B) If a seller persuades a person to buy something by a fraudulent misrepresentation, the buyer could ask for rescission and/or damages for the tort of deceit.
• C) A person can successfully argue non est factum and avoid his obligations under a contract only if he was misled about the very nature of the document and was not careless.
• D) Independent legal advice given to a person who wants to give a gift to a dominant person (e.g., his doctor) is good evidence to rebut a presumption of undue influence.
• E) Where, because of a mistake, a written document does not embody the unchanged term of the original oral agreement, a party to the contract could ask the court for the equitable remedy of rectification.

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Definitions:

Securities

Financial instruments that represent ownership positions, debts, or rights to ownership, such as stocks, bonds, and options.

De Jure

Pertaining to law or legal situations, often used to describe something that is legally recognized or established by law.

De Facto

A term used to describe practices or conditions that exist in reality, even if they are not officially recognized by laws.

Incorporators' Addresses

The physical or mailing addresses of the individuals who file the articles of incorporation, legally founding a corporation.