Often a Party to a Contract Wants to Avoid His

question 57

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 true with regard to these areas of the law?

• A) If a seller persuades a person to buy something by a innocent misrepresentation, the buyer could ask for rescission and damages for the tort of deceit.
• B) 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.
• C) 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.
• D) Independent legal advice given to a person is good evidence of undue influence.
• E) Where, a written document embodies the the original oral agreement, a party to the contract could ask the court for the equitable remedy of rectification.

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Definitions:

Exclusion of Markup

The practice of not including an additional amount to the cost of goods when pricing them, often to maintain competitive pricing.

Double Marginalization

A pricing issue that occurs when two or more entities in the same supply chain add their markup, leading to higher prices for the end consumer.

Retail Price

The price at which a product is sold to the public, usually after including costs of production, distribution, and a markup for profit.

Ensure Freshness

Measures or practices used to maintain the quality and safety of perishable products.