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.

---

Definitions:

Operating Leases

Operating leases are contractual agreements in which the lessee pays to use an asset for a specific period without gaining ownership, typically used for equipment and vehicles.

Capitalize

The accounting practice of recording a cost/expense as an asset, rather than an expenditure, thereby extending the recognition of its financial impact over the useful life of the asset.

Long-Term Liabilities

Financial obligations of a business that are due for repayment beyond the current fiscal year, including bonds payable, long-term loans, and lease obligations.

Current Liabilities

Financial obligations that a company is expected to pay within one year, including accounts payable, short-term loans, and other similar debts.