exam 4 sample questions

What happens if parties do not genuinely agree to a contract's terms?

The contract is not enforceable.

What is the implication of a unilateral mistake about a material fact?

The contract is generally enforceable.

What defines a bilateral mistake in a contract?

Both parties are mistaken about the same material fact.

What happens if a contractor's bid is significantly low due to a mistake?

The contract may still be enforceable.

What entitles a mistaken party to rescind a contract?

Mistakes of value or quality.

What indicates scienter in fraudulent misrepresentation?

Knowing a fact is not true.

How can undue influence arise?

From a confidential or trust-based relationship.

What constitutes duress in contract formation?

Forcing a party under threat.

What can the seller do if a bid was mistakenly low?

Can rescind the deal.

What is Ben's liability if he underestimated repair costs?

Still liable on the contract.

Under what condition can Plumbing rescind a contract with Quality Built?

If Quality Built knew of the mistake.

Why is Peyton's statement about land value not likely to support rescission?

It is considered an opinion.

What can Beth do upon discovering fraudulent misrepresentation?

Rescind the contract.

What indicates undue influence in Faye's case?

Lack of free will in decision-making.

What is the effect of threats on contract formation?

It constitutes duress.

What is the purpose of the Statute of Frauds?

To ensure reliable evidence of certain contracts.

What must a mortgage be to be enforced?

Must be in writing.

What is required for a contract to be enforceable if it cannot be performed within one year?

Must be in writing.

What is the enforceability of an oral sales contract for goods under $500?

It is enforceable.

What must a written contract for the sale of goods include?

A quantity term.

What happens if a contract requires writing but is not signed?

It is not enforceable.

What can a court do to clarify written contract terms?

Admit parol evidence.

What happens if a contract condition is not satisfied?

Obligations are discharged.

What is anticipatory repudiation treated as?

A present, material breach.

What is the most common way to terminate contractual duties?

By agreement.

What is the standard measure of compensatory damages?

Difference between promised and actual performance.

What does specific performance remedy provide?

The exact bargain promised in the contract.

What must parties do under the doctrine of restitution?

Return goods or money upon rescission.

What can Drew do after discovering the true value of goods?

Rescind the contract.

What is the appropriate remedy for an erroneous legal description in a contract?

Reformation.