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Chapter 13 - Reality of Consent
V. ANSWERS TO PROBLEMS AND PROBLEM CASES
1. No. A contract may be rescinded on the ground of mutual mistake when both parties have an
erroneous assumption about a matter basic to the contract. The mistake must have had a
2. No. Economic duress occurs when one person coerces another to enter a contract by
threatening his economic interests. The court stated that “the victim’s plight alone will not
3. No. The court found that a statement couched in terms of opinion can be a statement of
fact if it would appear to a reasonable listener or reader that the opinion is based on fact or at
4. Yes. The court stated that undue influence involves the use of excessive pressure applied by a
dominant party against a party who is susceptible to the other person's influence because of
5. Yes. The court stated that “mutual mistake will justify rescission where the mistake exists at
the tie the contract is entered into and the mistake is substantial….The sole purpose of the
6. Yes. The court stated that the genuineness of the coin was an essential fact on which the
7. It seems unlikely. The reality of consent doctrine most likely to be applied in this case is
unilateral mistake. Retailer would have to establish that he (through his agent) entered the
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 13 - Reality of Consent
8. Yes. The elements of duress were present. Although Keith may have had the right to institute
9. The Supreme Court of Pennsylvania, upholding a lower court’s grant of summary judgment
to the Jaconos, held that they did not have a duty to disclose the murder/suicide. Therefore,
10. Yes. The sale was voidable on the ground of misrepresentation (nondisclosure) when the
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
