Garland Induces Jules to Enter into a Contract for the Purchase

question 39

Multiple Choice

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant. Garland knowingly misrepresents a number of material features about the restaurant and the business. When Jules discovers the truth,he can

• A)not rescind the contract because Jules assumed the risk that the bargain would prove to be different from what he thought.
• B)rescind the contract on the basis of fraud.
• C)rescind the contract on the basis of mistake.
• D)rescind the contract on the basis of undue influence.

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Definitions:

Ordinary Annuity

A series of equal payments made at equal intervals of time, commonly used in calculations of loan repayments or future savings, where interest compounding occurs at the end of each period.

Expressed

Clearly communicated or made known in words, actions, or symbols.

Years

Units of time equal to 365 days, or 366 in a leap year, used to measure durations and ages.

Months

Periods into which a year is divided, each consisting of roughly 30 to 31 days, except for February which has 28 or 29 days.