4/25/2021 Bus Law Ch.

15 Flashcards | Quizlet

Bus Law Ch. 15

Terms in this set (40)

A material fact is a fact True

that a reasonable
person would consider
important when
determining his or her
course of action.

Voluntary consent may False

be lacking because of
misrepresentation but
not because of a
mistake.

A unilateral mistake is a False

mistake made by both
parties to a contract.

Generally, a unilateral False

mistake affords the
mistaken party a right to
relief from the contract.

Words or terms in True

contracts that are
subject to more than
one reasonable
interpretation can lead
to bilateral
Bus Law Ch.mistakes.
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Any party who does not False

receive what he or she
considers a fair bargain
can argue mistake.

An innocent party can True

rescind a fraudulent
contract and be
restored to his or her
original position.

To recover for fraud, a False

plaintiff must be twenty-
one or more years of
age.

Courts typically set False

aside contracts because
a party did not
volunteer pertinent
information.

Misrepresentation of a False
material fact cannot
occur through conduct
alone.

Misrepresentation can False

occur by words or
actions, but not by
silence.

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Scienter clearly exists if True

a party knows a fact is
not as stated.

A negligent False
misrepresentation is not
a basis for rescinding a
contract.

The element of False

justifiable reliance
requires the
misrepresentation to be
the sole factor in
inducing the deceived
party to enter into the
contract.

Because fraud actions True

necessarily involve
wrongful conduct,
courts may award
punitive damages.

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