Often a Party to a Contract Wants to Avoid His

question 145

Multiple Choice

Often a party to a contract wants to avoid his or her obligations by arguing that the contract was entered into because of a mistake,misrepresentation,undue influence,or duress.Which of the following is true 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 or her misrepresentation,which persuaded the buyer to buy,was true.
• B)Independent legal advice given to a person is good evidence of undue influence.
• C)If a seller persuades a person to buy something by an innocent misrepresentation,the buyer could ask for rescission and damages for the tort of deceit.
• D)Where a written document embodies the original oral agreement,a party to the contract could ask the court for the equitable remedy of rectification.
• E)An illiterate or blind person might successfully argue non est factum and avoid his or her obligations under a contract only if he or she was misled about the very nature of the document and was not careless.

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service.

Kink

A sudden change in the rate or direction of a curve or line, often used in economics to describe a sharp change in a demand or supply curve.

Kinked Demand Curve

A demand curve that has a distinct bend or kink, typically used in oligopoly models, suggesting that a firm will face different elasticities for price increases versus price decreases.

Lower Prices

A decrease in the cost of goods or services, often resulting in increased demand or consumer purchasing power.