Question
Malia tells Juan that the car she is offering to sell to him is in excellent shape and very reliable. Juan purchases the car and
Malia tells Juan that the car she is offering to sell to him is in excellent shape and very reliable. Juan purchases the car and three days later the engine blows up. Juan ...
| Can void the contract because the car was clearly not in excellent condition nor reliable | ||
| Can void the contract because Malia engaged in fraudulent misrepresentation | ||
| Can void the contract because Malia engaged in negligent misrepresentation | ||
| Cannot void the contract because more than 24 hours have passed since the contract was completed | ||
| Cannot void the contract based on misrepresentation because Malia's statements were opinion |
Which of the following is true of fraudulent misrepresentation?
| Fraudulent misrepresentation is a misstatement of facts that is unintentionally made and unjustifiably relied upon. | ||
| A fraudulent misrepresentation is always a crime. | ||
| If a statement of fact is made false by later events, it must be disclosed as false. | ||
| A half-truth cannot amount to fraudulent misrepresentation. | ||
| A typist's unnoticed error in a letter cannot amount to fraudulent misrepresentation. |
Which of the following is true with regard to contract mistakes?
| Mistake is always a basis for voiding a contract no matter how minor or trivial it is | ||
| If a party makes a mistake due to the fraud of another party, then he cannot get relief for being the victim of fraud | ||
| A unilateral mistake (made by one party) is not usually a basis for voiding a contract. | ||
| Relief is never granted to a party requesting it for a mutual contract mistake because people should learn to live with their mistakes | ||
| Relief is always granted to a party requesting it for a mutual contract mistake of any kind |
In which of the following circumstances is capacity to contract an issue?
| One party to the contract has been adjudicated as mentally incompetent | ||
| One party to the contract is so obviously intoxicated that she cannot speak clearly | ||
| One party to the contract is a minor (under age 18 in most states) but he looks very mature and the other party thinks he is an adult | ||
| One party to the contract is a minor (under age 18 in most states) | ||
| All of the above |
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