In Which of the Following Cases Is a Contract Between

question 38

Multiple Choice

In which of the following cases is a contract between A and B binding?

• A) A makes a mistake of material fact, and the mistake is unknown by B.
• B) A and B make the same mistake of material fact.
• C) A recklessly but honestly misrepresents a material fact.
• D) A innocently misrepresents a material fact.

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Definitions:

Individual Accounts

Financial accounts that are owned by a single individual, as opposed to joint accounts owned by multiple parties.

Standard Account Forms

Preset document templates for financial transactions and accounts record-keeping.

New Balance

The updated amount in an account following recent transactions or adjustments.

Transposition

An error in which the order of the digits is changed, such as writing $542 as $452 or $524.