978-0538496902 Chapter 7

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STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ7—1ȱQUIZ

LegalȱConceptsȱ

Directions:ȱFillȱinȱtheȱblank(s)ȱwithȱtheȱmostȱappropriateȱtermȱorȱphraseȱtoȱcompleteȱ

theȱsentence.ȱ

ȱAnswersȱ

1.ȱIfȱoneȱpartyȱusesȱphysicalȱthreatsȱtoȱobtainȱ

anotherȱparty’sȱsignature,ȱthereȱisȱnoȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱȱ

agreementȱbetweenȱthem.ȱ

1._______________________ȱ

2.ȱIfȱthereȱisȱnoȱgenuineȱassent,ȱtheȱapparentȱ

contractȱisȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱ.ȱ

2._______________________ȱ

3.ȱA(n)ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱoccursȱwhenȱoneȱpartyȱbacksȱoutȱ

ofȱaȱtransactionȱbyȱaskingȱforȱtheȱreturnȱofȱ

whatȱtheyȱgaveȱandȱofferingȱtoȱgiveȱbackȱwhatȱ

theyȱhaveȱreceived.ȱ

3._______________________ȱ

4.ȱInȱa(n)ȱ ȱȱȱȱȱȱȱ?ȱ ȱȱȱȱȱȱȱrelationship,ȱanȱinordinateȱ

amountȱofȱtrustȱandȱconfidenceȱisȱplacedȱbyȱaȱ

dependentȱpartyȱinȱtheȱdominantȱparty.ȱ

4._______________________ȱ

5.ȱDuressȱoccursȱwhenȱoneȱpartyȱusesȱa(n)ȱ ȱȱȱȱȱȱ

ȱȱȱȱȱȱȱ?ȱ ȱȱȱȱȱȱȱȱorȱ ȱȱȱȱȱȱȱ?ȱ ȱȱȱȱȱȱȱtoȱobtainȱanȱexpressionȱ

ofȱagreement.ȱ

5._______________________ȱ

6.ȱWhenȱoneȱpartyȱtoȱaȱcontractȱisȱinȱaȱpositionȱofȱ

trustȱandȱwrongfullyȱdominatesȱtheȱotherȱ

party,ȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱoccurs.ȱ

6._______________________ȱ

7.ȱTheȱthreatȱtoȱengageȱinȱillegalȱconductȱtoȱwinȱ

agreementȱisȱalwaysȱconsideredȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱ.ȱ

7._______________________ȱ

8.ȱTheȱtwoȱkeyȱelementsȱinȱundueȱinfluenceȱareȱ

theȱrelationshipȱandȱtheȱwrongfulȱorȱunfairȱ

ȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱ.ȱ

8._______________________ȱ

9.ȱDuressȱcanȱoccurȱwhenȱtheȱthreatȱtoȱȱȱȱȱȱȱȱ?ȱȱȱȱȱȱȱȱisȱ

reallyȱmadeȱforȱaȱpurposeȱunrelatedȱtoȱtheȱsuit.ȱ

9._______________________ȱ

Chapter 7 Genuineness of Assent

2-22

Chapter 7 Genuineness of Assent 2-23

LegalȱApplicationsȱ

10.ȱMrs.ȱSwansonȱisȱanȱelderlyȱladyȱwhoȱhasȱtwoȱdaughters,ȱChariseȱandȱCassie.ȱ

Mrs.ȱSwansonȱisȱnoȱlongerȱableȱtoȱliveȱaloneȱandȱcareȱforȱherself.ȱChariseȱisȱ

willingȱtoȱstayȱwithȱherȱmotherȱifȱsheȱwillȱchangeȱherȱwillȱtoȱmakeȱChariseȱtheȱ

soleȱheirȱtoȱherȱestate.ȱCassieȱisȱagreeableȱtoȱCharise’sȱplan.ȱWhatȱadviceȱwouldȱ

youȱgiveȱthisȱfamilyȱtoȱpreventȱaȱcaseȱofȱundueȱinfluence?ȱ

11.ȱJackȱandȱMaxȱbothȱworkedȱinȱaȱlargeȱelectronicsȱstore.ȱJackȱfoundȱoutȱthatȱMaxȱ

wasȱstealingȱsmallȱelectronicsȱfromȱtheȱstoreȱandȱsellingȱthemȱatȱaȱdiscountȱrateȱ

toȱhisȱfriends.ȱJackȱapproachesȱMaxȱandȱthreatensȱtoȱgoȱtoȱtheȱpoliceȱunlessȱMaxȱ

cutsȱhimȱinȱonȱtheȱprofitsȱthatȱMaxȱisȱmaking.ȱMaxȱagrees,ȱbutȱafterȱtwoȱmonthsȱ

ofȱcooperatingȱwithȱJack,ȱMaxȱrefusesȱtoȱpayȱJackȱanyȱmoreȱmoney.ȱJackȱ

threatensȱtoȱsueȱMaxȱforȱrenegingȱonȱtheirȱcontract.ȱDoesȱMaxȱhaveȱaȱdefense?ȱ

Explain.ȱȱ

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ7—1ȱPRACTICEȱACTIVITY

Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱforȱyourȱ

answers.ȱ

1.ȱTotemȱMarine,ȱaȱtransportȱcompany,ȱenteredȱintoȱaȱcontractȱtoȱtransportȱ

monthsȱlater,ȱhowever,ȱTotemȱsuedȱAlyeskaȱallegingȱthatȱitȱwasȱforcedȱtoȱsignȱ

theȱreleaseȱunderȱeconomicȱduress.ȱWillȱTotemȱbeȱsuccessfulȱinȱsuingȱAlyeskaȱ

forȱtheȱrestȱofȱitsȱmoney?ȱExplain.ȱ[TotemȱMarineȱT&ȱBȱv.ȱAlyeskaȱPipeline,ȱ584ȱP.ȱ

2.ȱJamesȱCurlȱdiedȱleavingȱfourȱchildren,ȱagesȱ16,ȱ17,ȱ18,ȱandȱ21ȱyearsȱold.ȱAtȱtheȱ

timeȱofȱhisȱdeath,ȱtheȱchildrenȱbecameȱcloseȱtoȱaȱfamilyȱfriendȱknownȱasȱ“Uncleȱ

Jack,”ȱwhoȱofferedȱtoȱhelpȱthemȱwithȱtheȱmaintenanceȱofȱtheȱhouse.ȱHeȱalsoȱ

undueȱinfluence.ȱUncleȱJackȱclaimedȱthatȱtheȱpropertyȱwasȱtransferredȱtoȱhimȱ

becauseȱheȱfellȱandȱwasȱinjuredȱwhileȱonȱtheȱpropertyȱandȱthatȱtheȱtransferȱwasȱ

inȱsettlementȱofȱhisȱclaim.ȱTheȱchildrenȱsayȱthatȱwhenȱtheyȱsignedȱtheȱpaper,ȱitȱ

wasȱblankȱwithȱsixȱlinesȱonȱit.ȱWillȱtheȱcourtȱpermitȱUncleȱJackȱtoȱtakeȱtheȱ

children’sȱproperty?ȱExplain.ȱ[CurlȱbyȱandȱthroughȱCurlȱv.ȱKey,ȱ316ȱS.E.ȱ2dȱ272ȱ

Chapter 7 Genuineness of Assent

2-24

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ7—1ȱRETEACHȱ

Directions:ȱWriteȱtheȱnumbersȱ1–20ȱonȱindexȱcardsȱinȱlargeȱprint.ȱOnȱtheȱotherȱsideȱ

ofȱtheȱcard,ȱwriteȱtheȱdefinitionȱorȱtermȱthatȱisȱshownȱbyȱeachȱnumberȱbelow.ȱTapeȱ

theȱcardsȱtoȱaȱchalkboardȱinȱtheȱpatternȱbelowȱwithȱtheȱnumbersȱfacingȱtheȱstudents.ȱ

Divideȱtheȱstudentsȱintoȱfourȱorȱfiveȱteams.ȱEachȱteamȱshouldȱchooseȱaȱcaptainȱtoȱ

answerȱforȱthem.ȱTheȱteamȱcaptainȱwillȱchooseȱanyȱtwoȱnumbers.ȱReadȱtheȱcontentsȱ

onȱtheȱbackȱofȱtheȱcardsȱoutȱloud.ȱIfȱtheȱtwoȱchosenȱcardsȱformȱaȱcorrectȱmatchȱofȱaȱ

termȱandȱitsȱdefinition,ȱtheyȱareȱremovedȱfromȱtheȱchalkboardȱandȱthatȱteamȱscoresȱ

aȱpoint.ȱIfȱtheȱcardsȱdoȱnotȱmakeȱaȱcorrectȱmatch,ȱtheȱnextȱteamȱmayȱtakeȱaȱturn.ȱ

Note:ȱDoȱnotȱallowȱtheȱstudentsȱtoȱhaveȱanythingȱtoȱwriteȱwithȱduringȱtheȱgame.ȱ

Cardȱ1ȱ

rescindȱ

Cardȱ2ȱ

Usingȱaȱpositionȱ

ofȱtrustȱtoȱ

dominateȱanotherȱ

partyȱ

Cardȱ3ȱ

Anȱagreementȱ

whereȱnoȱthreatȱisȱ

madeȱ

Cardȱ4ȱ

ratificationȱ

Cardȱ5ȱ

Aȱkeyȱelementȱinȱ

undueȱinfluenceȱ

Cardȱ6ȱ

Aȱthreatȱtoȱengageȱ

inȱillegalȱconductȱ

Cardȱ7ȱ

voidableȱ

Cardȱ8ȱ

unfairȱpersuasionȱ

byȱaȱcontractȱ

Chapter 7 Genuineness of Assent 2-25

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ7—1ȱENRICHMENTȱ

Youȱlearnedȱinȱtheȱlessonȱthatȱundueȱinfluenceȱoccursȱwhenȱtheȱdominatingȱpartyȱtoȱ

aȱconfidentialȱrelationshipȱexertsȱirresistibleȱpressureȱonȱtheȱdominatedȱpartyȱtoȱ

enterȱintoȱaȱcontractȱthatȱbenefitsȱtheȱformer.ȱNewsȱreportsȱoftenȱseemȱlikeȱtheyȱareȱ

fullȱofȱstoriesȱwhereȱthisȱtypeȱofȱcaseȱoccurs—anȱattorneyȱorȱfinancialȱadvisorȱbilksȱaȱ

clientȱoutȱofȱaȱlifeȱsavings,ȱanȱagentȱorȱparentȱmisusesȱtheȱfundsȱofȱaȱminorȬageȱ

entertainerȱchild,ȱaȱcaregiverȱconvincesȱanȱelderlyȱandȱpossiblyȱsenileȱpatientȱtoȱsignȱ

overȱstocksȱorȱdeeds.ȱFindȱsuchȱaȱcaseȱbyȱreadingȱmagazine,ȱnewspaper,ȱorȱInternetȱ

articlesȱandȱanswerȱtheȱfollowingȱquestions.ȱ

1.ȱWhatȱwasȱtheȱrelationshipȱbetweenȱtheȱpartiesȱtoȱtheȱcontract?ȱ

2.ȱWhatȱwasȱtheȱevidenceȱofȱunfairȱpersuasionȱbeingȱclaimedȱbyȱtheȱweakerȱparty?ȱ

3.ȱWasȱtheȱcontractȱprovenȱtoȱbeȱfair?ȱWhyȱorȱwhyȱnot?ȱ

Chapter 7 Genuineness of Assent

2-26

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ7—2ȱQUIZ

LegalȱConceptsȱ

Directions:ȱInȱtheȱAnswersȱcolumn,ȱwriteȱtheȱletterȱfromȱColumnȱ1ȱthatȱrepresentsȱ

theȱwordȱorȱphraseȱthatȱmatchesȱtheȱstatementȱinȱColumnȱ2.ȱ

ȱColumnȱ1ȱȱColumnȱ2ȱAnswersȱ

ȱȱ 1.ȱAnȱincorrectȱbeliefȱbyȱbothȱpartiesȱaboutȱȱ 1. _______ ȱ

anȱimportantȱfactȱ

ȱ2.ȱMisrepresentationȱwhenȱtheȱmisstatementȱȱ

2. _______

ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ

wasȱmadeȱrecklesslyȱorȱintentionallyȱandȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ

injuryȱresultedȱ

ȱȱ 3.ȱDistinguishedȱfromȱfactsȱbasedȱonȱhowȱ3. _______ ȱ

concreteȱtheyȱareȱ

ȱȱ 4.ȱImportantȱdetailsȱthatȱinfluenceȱtheȱȱ 4. _______ ȱ

parties’ȱcontractȱdecisionȱ

ȱȱ 5.ȱToȱestablishȱfraudȱthisȱmustȱbeȱprovenȱȱ 5. _______ ȱ

ȱȱ 6.ȱAȱstatementȱmadeȱbyȱaȱpartyȱwhoȱȱ

ȱȱ ȱdidȱnotȱknowȱitȱwasȱuntrueȱ6.ȱ______ȱ

ȱȱ 7.ȱAnotherȱnameȱforȱmutualȱmistakeȱ7. _______ ȱ

ȱȱ 8.ȱAȱsubstituteȱforȱaȱfalseȱstatementȱofȱfactȱ8. _______ ȱ

ȱȱ 9.ȱAnȱincorrectȱbeliefȱbyȱoneȱofȱtheȱpartiesȱȱ 9. _______ ȱ

inȱaȱcontractȱ

A.ȱopinionsȱ

B.ȱinnocentȱȱ

ȱmisrepresentationȱ

C.ȱunilateralȱmistakeȱ

D.ȱmutualȱmistakeȱ

E.ȱbilateralȱmistakeȱ

F.ȱfraudulentȱȱ

ȱmisrepresentationȱ

G.ȱmaterialȱfactsȱ

H.ȱfraudȱ

I.ȱinjuryȱ

J.ȱactiveȱconcealmentȱ

ȱȱ 10.ȱAȱstatementȱmadeȱbyȱaȱpartyȱwhoȱȱ 10._______ ȱ

knewȱitȱwasȱuntrueȱ

LegalȱApplicationsȱ

11.ȱCliffȱSandstromȱofferedȱtoȱsellȱhisȱMercuryȱCougarȱforȱ$8,000ȱtoȱhisȱneighborȱ

Emil.ȱEmilȱknowsȱthatȱCliffȱhasȱtakenȱgoodȱcareȱofȱtheȱcar,ȱandȱheȱagreesȱtoȱbuyȱ

it.ȱCliff’sȱson,ȱJohn,ȱdroveȱtheȱcarȱtoȱworkȱaȱweekȱago.ȱWhileȱJohnȱwasȱdrivingȱ

behindȱaȱdumpȱtruck,ȱaȱrockȱwasȱthrownȱontoȱtheȱwindshieldȱandȱaȱsmallȱcrackȱ

resulted.ȱJohnȱdidȱnotȱtellȱhisȱfatherȱaboutȱtheȱcrack.ȱNeitherȱCliffȱnorȱhisȱ

neighborȱnoticedȱtheȱcrackȱbeforeȱtheȱsaleȱwasȱmade.ȱIfȱEmilȱdecidesȱtoȱsueȱCliffȱ

forȱactiveȱconcealment,ȱwillȱheȱwin?ȱWhyȱorȱwhyȱnot?ȱȱ

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ7—2ȱPRACTICEȱACTIVITY

Readȱtheȱfollowingȱcasesȱandȱanswerȱtheȱquestionsȱaboutȱthem.ȱAttachȱaȱpageȱifȱadditionalȱ

spaceȱisȱneededȱforȱanswers.ȱ

1.ȱTheȱEdwardsȱsoldȱtheirȱhouseȱtoȱtheȱWalshes.ȱPriorȱtoȱtheȱsale,ȱtheȱWalshesȱ

noticedȱaȱcreekȱrunningȱalongȱtheȱedgeȱofȱtheȱpropertyȱinȱtheȱbackȱofȱtheȱhouseȱ

andȱinquiredȱaboutȱit.ȱSpecifically,ȱtheyȱwantedȱtoȱknowȱwhetherȱitȱwouldȱfloodȱ

theȱtrial,ȱGrayceȱEdwardsȱadmittedȱthatȱsheȱandȱherȱhusbandȱhadȱsignedȱaȱ

petitionȱtoȱtheȱcountyȱcomplainingȱthatȱtheȱcreekȱfloodedȱneighborhoodȱhomes.ȱ

Mr.ȱEdwardsȱadmittedȱthatȱhisȱpropertyȱhadȱbeenȱfloodedȱfourȱotherȱtimes.ȱ

HaveȱtheȱEdwardsȱcommittedȱfraudȱifȱtheȱcreekȱcouldȱbeȱseenȱandȱexaminedȱbyȱ

theȱWalshes?ȱExplain.ȱ[Walshȱv.ȱEdwards,ȱ197ȱA.ȱ2dȱ424ȱ(Md.ȱ1964)]ȱ

2.ȱB.N.S.ȱenteredȱintoȱaȱcontractȱtoȱsellȱ200,000ȱpoundsȱofȱchickenȱtoȱFrigaliment.ȱ

TheȱcontractȱrequiredȱthatȱtheȱchickenȱbeȱGradeȱA,ȱgovernmentȬinspected,ȱU.S.ȱ

freshȱfrozen,ȱofȱaȱcertainȱweightȱperȱchicken,ȱandȱcostȱbetweenȱ33ȱandȱ37ȱcentsȱ

exceptȱaȱgoose,ȱduck,ȱorȱturkey,ȱandȱthatȱaȱbuyerȱmustȱspecifyȱtheȱtypeȱofȱ

chickenȱheȱwants.ȱIsȱthereȱactuallyȱanȱagreementȱifȱB.N.S.ȱandȱFrigalimentȱhadȱ

twoȱdifferentȱideasȱinȱmindȱaboutȱtheȱchickens?ȱExplain.ȱ[FrigalimentȱImportingȱ

Chapter 7 Genuineness of Assent

2-28

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ7—2ȱRETEACH

Directions:ȱCircleȱtheȱanswersȱtoȱeachȱquestionȱinȱtheȱpuzzleȱbelow.ȱAnswersȱmayȱ

appearȱinȱhorizontal,ȱvertical,ȱorȱdiagonalȱform.ȱTheyȱmayȱalsoȱbeȱwrittenȱ

backwardsȱorȱfromȱtheȱbottomȱofȱtheȱpuzzleȱtoȱtheȱtop.ȱ

1.ȱWhatȱmustȱendȱwhenȱaȱtrueȱstatementȱisȱmadeȱfalseȱbyȱsubsequentȱevents?ȱ

3.ȱWhatȱkindȱofȱmistakeȱinvolvesȱanȱincorrectȱbeliefȱbyȱoneȱofȱtheȱpartiesȱinȱaȱ

contract?ȱ

4.ȱWhatȱkindȱofȱmistakeȱinvolvesȱanȱincorrectȱbeliefȱbyȱbothȱpartiesȱaboutȱanȱ

importantȱfact?ȱ

5.ȱWhatȱisȱanotherȱnameȱforȱaȱmutualȱmistake?ȱ

6.ȱAȱstatementȱmadeȱbyȱaȱpartyȱwhoȱknewȱitȱwasȱuntrueȱisȱcalledȱa(n)ȱ

____________________ȱmisrepresentation.ȱ

7.ȱWhatȱareȱimportantȱdetailsȱthatȱinfluenceȱtheȱparties’ȱcontractȱdecisions?ȱ

8.ȱAȱcrimeȱthatȱisȱbasedȱonȱmisrepresentationȱisȱcalled____________________.ȱ

9.ȱ____________________ȱandȱintentȱmustȱbeȱprovedȱtoȱestablishȱfraud.ȱ

10.ȱAȱsubstituteȱforȱaȱfalseȱstatementȱofȱfactȱisȱcalledȱactiveȱ____________________.ȱ

CȱOȱNȱCȱLȱMȱNȱTȱNȱUȱOȱCȱMȱLȱ

FȱRȱAȱUȱNȱIȱLȱAȱTȱEȱRȱAȱLȱBȱ

CȱOȱNȱCȱEȱAȱLȱMȱEȱNȱTȱTȱBȱEȱ

IȱNȱOȱDȱWȱDȱCȱMȱOȱEȱRȱBȱYȱRȱ

Chapter 7 Genuineness of Assent 2-29

STUDENT _______________________________________ CLASS _______________________ DATE _________

LESSONȱ7—2ȱENRICHMENT

Asȱyouȱlearnedȱinȱthisȱlesson,ȱtheȱpartiesȱinȱaȱcontractȱnegotiationȱmayȱmakeȱ

statementsȱthatȱturnȱoutȱtoȱbeȱuntrue.ȱThisȱisȱknownȱasȱmisrepresentation.ȱCheckȱ

withȱaȱjudgeȱorȱattorneyȱforȱinformationȱonȱaȱcaseȱinvolvingȱmisrepresentationȱorȱ

readȱaboutȱoneȱinȱaȱmagazine,ȱnewspaper,ȱorȱInternetȱarticle.ȱNoteȱtheȱthreeȱpointsȱ

toȱprovingȱmisrepresentationȱasȱlistedȱinȱtheȱtext.ȱDetermineȱhowȱyourȱcaseȱprovesȱ

misrepresentationȱbyȱfillingȱinȱtheȱappropriateȱfactsȱbyȱeachȱofȱtheȱstatementsȱ

below.ȱ

2.ȱTheȱstatementȱisȱmaterialȱtoȱtheȱtransactionȱorȱisȱfraudulent.ȱ

Chapter 7 Genuineness of Assent

2-30

STUDENT _______________________________________ CLASS _______________________ DATE _________

CHAPTERȱ7ȱTESTȱ

SECTION I—IDENTIFY LEGAL TERMS

Directions:ȱPlaceȱaȱTȱforȱTrueȱorȱanȱFȱforȱFalseȱinȱtheȱAnswersȱcolumnȱtoȱshowȱ

whetherȱeachȱofȱtheȱfollowingȱstatementsȱisȱtrueȱorȱfalse.ȱ

ȱAnswersȱ

1.ȱRescissionȱisȱconductȱsuggestingȱyouȱintendȱtoȱbeȱboundȱbyȱtheȱ

contract.ȱ

1._______ȱ

2.ȱTheȱabsenceȱofȱgenuineȱassentȱwillȱmakeȱaȱcontractȱvoidable.ȱ2._______ȱ

3.ȱCommittingȱanȱactȱofȱviolenceȱtoȱobtainȱaȱsignatureȱonȱaȱwrittenȱ

contractȱisȱduress.ȱ

3._______ȱ

4.ȱWhenȱoneȱpartyȱtoȱtheȱcontractȱisȱinȱaȱpositionȱofȱtrustȱandȱ

wrongfullyȱdominatesȱtheȱotherȱparty,ȱundueȱinfluenceȱoccurs.ȱ

4._______ȱ

5.ȱSigningȱaȱcontractȱwrittenȱinȱtechnicalȱterminologyȱthatȱyouȱdon’tȱ

understandȱwillȱnotȱbindȱyou.ȱ

5._______ȱ

6.ȱMaterialȱfactsȱareȱimportantȱfactsȱthatȱinfluenceȱtheȱparties’ȱ

decisionsȱaboutȱaȱcontract.ȱ

6._______ȱ

7.ȱInȱsomeȱstates,ȱtheȱcontractȱisȱstillȱvalidȱifȱtheȱmutualȱmistakeȱisȱ

aboutȱtheȱapplicableȱlaw.ȱ

7._______ȱ

8.ȱUnilateralȱmistakesȱcreateȱtheȱrightȱtoȱrescindȱorȱvoidȱtheȱ

contract.ȱ

8._______ȱ

9.ȱAllȱpersonsȱareȱpresumedȱtoȱknowȱtheȱlaw.ȱ9._______ȱ

10.ȱPunitiveȱdamagesȱareȱaȱformȱofȱpunishment.ȱ10._______ȱ

Chapter 7 Genuineness of Assent 2-31

SECTION II—THINK CRITICALLY ABOUT LEGAL CONCEPTS

Directions:ȱInȱtheȱAnswersȱcolumnȱatȱtheȱrightȱofȱeachȱstatement,ȱwriteȱtheȱletterȱthatȱ

representsȱtheȱword,ȱorȱgroupȱofȱwords,ȱthatȱcorrectlyȱcompletesȱtheȱstatement.ȱ

ȱȱ Answersȱ

11.ȱInȱorderȱtoȱbeȱeffective,ȱaȱrescissionȱmustȱbeȱ(a)ȱratified,ȱ(b)ȱ

prompt,ȱ(c)ȱagreedȱupon,ȱ(d)ȱnoneȱofȱtheseȱ

11._______ȱ

12.

Aȱgenuineȱagreementȱmayȱbeȱlackingȱdueȱtoȱ(a)ȱduress,ȱ(b)ȱ

fraud,ȱ(c)ȱundueȱinfluence,ȱ(d)ȱallȱofȱtheseȱ

12._______ȱ

13.

Inȱeconomicȱduressȱcases,ȱtheȱcourtsȱlookȱatȱ(a)ȱbothȱtheȱthreatȱ

andȱtheȱsizeȱofȱtheȱthreatenedȱparty,ȱ(b)ȱbothȱtheȱthreatȱandȱtheȱ

placeȱwhereȱtheȱthreatȱoccurred,ȱ(c)ȱbothȱtheȱthreatȱandȱtheȱ

alternativesȱavailableȱtoȱtheȱthreatenedȱparty,ȱ(d)ȱnoneȱofȱtheseȱ

13._______ȱ

14.

Keyȱelementsȱinȱundueȱinfluenceȱareȱunfairȱpersuasionȱandȱ(a)ȱ

relationship,ȱ(b)ȱownership,ȱ(c)ȱbothȱaȱandȱb,ȱ(d)ȱnoneȱofȱtheseȱ

14._______ȱ

15.ȱAȱmistakeȱfromȱfailureȱtoȱreadȱaȱcontractȱbeforeȱsigningȱisȱcalledȱ

(a)ȱaȱfraudulentȱmistake,ȱ(b)ȱaȱmutualȱmistake,ȱ(c)ȱaȱunilateralȱ

mistake,ȱ(d)ȱnoneȱofȱtheseȱ

15._______ȱ

16.ȱGenerally,ȱmistakesȱthatȱhaveȱnoȱeffectȱuponȱtheȱcontractȱrightsȱȱȱ

ofȱtheȱpartiesȱareȱ(a)ȱfraudulentȱmistakes,ȱ(b)ȱmutualȱmistakes,ȱȱȱ

(c)ȱunilateralȱmistakes,ȱ(d)ȱnoneȱofȱtheseȱ

16._______ȱ

17.

Inȱmisrepresentation,ȱtheȱstatementȱmustȱbeȱoneȱofȱ(a)ȱslander,ȱȱȱ

(b)ȱfact,ȱ(c)ȱopinion,ȱ(d)ȱunimportantȱinformationȱ

17._______ȱ

18.

Disclosureȱisȱrequiredȱwhenȱaȱstatementȱ(a)ȱomitsȱimportantȱ

18._______ȱ

19.ȱContractsȱenteredȱintoȱasȱȱresultȱofȱmisrepresentationȱorȱfraudȱ

areȱvoidableȱbyȱ(a)ȱtheȱinjuredȱparty,ȱ(b)ȱtheȱUCC,ȱ(c)ȱbothȱaȱandȱ

b,ȱȱȱ(d)ȱnoneȱofȱtheseȱ

19._______ȱ

20.

Anȱuntrueȱstatementȱisȱnotȱmaterialȱifȱ(a)ȱtheȱstatementȱwouldȱ

causeȱaȱreasonableȱpersonȱtoȱcontract,ȱ(b)ȱtheȱdefendantȱknewȱ

thisȱplaintiffȱwouldȱrelyȱonȱtheȱstatement,ȱ(c)ȱtheȱdefendantȱ

knewȱtheȱstatementȱwasȱfalse,ȱ(d)ȱtheȱstatementȱwasȱanȱhonestȱ

opinionȱ

20._______ȱ

SECTION III—APPLY LEGAL PRACTICES

21.ȱWhenȱitȱbecameȱclearȱthatȱDean’sȱparentsȱneededȱsomeoneȱtoȱliveȱinȱandȱhelpȱ

careȱforȱthem,ȱDeanȱofferedȱtoȱdoȱit.ȱWithinȱaȱmonthȱafterȱmovingȱin,ȱheȱtoldȱhisȱ

parentsȱthatȱheȱwouldȱcontinueȱtoȱstayȱonlyȱifȱtheyȱsignedȱallȱtheȱrealȱestateȱoverȱ

toȱhimȱandȱgaveȱhimȱpowerȱofȱattorneyȱonȱtheirȱbankȱaccounts.ȱWithinȱfourȱ

monthsȱafterȱtheyȱdidȱthis,ȱDeanȱputȱhisȱparentsȱinȱaȱnursingȱhome.ȱCouldȱthisȱ

beȱconsideredȱundueȱinfluence?ȱCouldȱthereȱbeȱcauseȱforȱduressȱinȱthisȱ

situation?ȱExplainȱyourȱanswer.ȱ

22.ȱBruceȱtoldȱMengȱthatȱtheȱmotorȱhadȱjustȱbeenȱrebuiltȱinȱtheȱtruckȱheȱwasȱsellingȱ

toȱMeng.ȱWithinȱfourȱmonthsȱafterȱtheȱpurchase,ȱtheȱmotorȱhadȱtoȱbeȱreplaced.ȱ

DidȱBruceȱcommitȱfraud?ȱExplainȱyourȱanswer.ȱ

ANSWERS

Lessonȱ7—1ȱ

Quiz

10.ȱChariseȱneedsȱtoȱbeȱcompletelyȱhonestȱandȱwillingȱtoȱdiscussȱallȱtheȱimportantȱ

Practice Activity

1.ȱYes,ȱTotemȱwillȱbeȱsuccessful.ȱTheȱcourtȱagreedȱwithȱTotemȱandȱinvalidatedȱtheȱ

2.ȱNo,ȱUncleȱJackȱwillȱnotȱbeȱallowedȱtoȱtakeȱtheȱproperty,ȱandȱaȱjuryȱmustȱ

determineȱifȱthereȱwasȱundueȱinfluenceȱonȱtheȱchildrenȱbyȱUncleȱJack.ȱUndueȱ

influenceȱisȱtheȱexerciseȱofȱanȱimproperȱinfluenceȱoverȱtheȱmindȱandȱwillȱofȱ

anotherȱtoȱsuchȱanȱextentȱthatȱactionȱtakenȱisȱnotȱthatȱofȱaȱfreeȱagent.ȱItȱisȱtheȱ

2-34 Chapter 7 Genuineness of Assent

Chapter 7 Genuineness of Assent 2-35

Reteach

Theȱcorrectȱcardȱmatchesȱareȱasȱfollows:ȱ

1ȱandȱ10ȱ

2ȱandȱ17ȱ

5ȱandȱ8ȱ

6ȱandȱ15ȱ

7ȱandȱ9ȱ

Enrichment Activity

Lessonȱ7—2ȱ

Quiz

Practice Activity

1.ȱOrdinarily,ȱaȱsellerȱofȱrealtyȱisȱnotȱobligatedȱtoȱdiscloseȱtoȱprospectiveȱbuyersȱ

objectionableȱorȱundesirableȱconditionsȱorȱfeaturesȱofȱtheȱpropertyȱofferedȱforȱ

2.ȱTheȱcourtȱfoundȱforȱB.N.S.ȱInȱtheȱopinionȱofȱFrigaliment,ȱaȱchickenȱwasȱaȱyoungȱ

chickenȱsuitableȱforȱbroilingȱandȱfrying.ȱAccordingȱtoȱB.N.S.,ȱaȱchickenȱmeansȱ

anyȱbirdȱofȱthatȱgenusȱthatȱmeetsȱcontractȱspecificationsȱonȱweightȱandȱquality,ȱ

Reteach

Answersȱtoȱwordȱsearchȱareȱcircledȱbelowȱandȱalsoȱappearȱinȱboldȱprint.ȱTheyȱareȱ

2-36 Chapter 7 Genuineness of Assent

EȱRȱMȱȱOȱPȱAȱNȱNȱUȱUȱAȱAȱWȱ

CȱDȱTȱUȱRȱLȱEȱJȱDȱTȱOȱTȱJȱAȱ

SȱSȱIȱTȱAȱKȱEȱPȱUȱDȱAȱRȱFȱSȱ

Enrichment Activity

Answersȱwillȱvary.ȱ

Chapter 7 Genuineness of Assent 2-37

ANSWERS TO TEST QUESTIONS

SECTION I

SECTION II

SECTION III

21.ȱYes.ȱTheȱthreatȱofȱleavingȱunlessȱtheyȱsignedȱoverȱeverythingȱdoesn’tȱreallyȱ