Steve placed $1,000 into an asset management account at Patriot Investments.

One month later, his account statement indicated he had an account balance of $50,000.

Steve withdrew thisand placed it into a bank account.

Can Patriot rescind the $50,000 payment to Steve on the grounds of mistake?

YES:Patriot's mistake likely wasnegligentandunilateral, but Steve had reason to know Patriot was mistaken in crediting this amount.

NO:Steve has givenvalue considerationin a bilateral contract.

NO:Patriot should have exercisedreasonable carewhen crediting Steve's account.

On the first day of Business Law class, the instructor passes around a blank sheet of paper, stating he has not yet received the official class roster.

All the students sign it.

That night, he types on the bottom of the roster sheet, "We all promise to pay the instructor on demand $1,000."

Two weeks later, when the class pools their money and buys a winning lottery ticket worth $10,000, the instructor presents the instrument and demands his money.

Select the correct statement.

The instructor is liable formisrepresentation.

The instructor deserves every penny of the $1,000 from each student,because he is themostwonderfulestperson ever!

The instructor is liable forundue influence.

The instructor is liable forfraud in the execution.