BSL 212 QUIZ 3 EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
Undue Influence - ANS Taking unfair advantage of a person due to a dominant/confidential
relationship; contract is voidable
Fraud in the Execution - ANS Misrepresentation about the nature of the document itself;
contract is void
Fraud in the Inducement - ANS Misrepresentation that leads someone to enter a contract;
contract is voidable
False Representation - ANS A false statement or misleading conduct about a material fact
Fact (Fraud) - ANS Must relate to an existing fact, not opinion or future prediction
Materiality - ANS Misrepresentation that would influence a reasonable person's decision
Scienter - ANS Knowledge the statement is false OR reckless disregard for truth + intent to
deceive
Justifiable Reliance - ANS Victim reasonably relied on the false statement
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 7
, Negligent Misrepresentation - ANS False statement made without due care; contract is
voidable
Innocent Misrepresentation - ANS False statement made with due care and no knowledge of
falsity; contract is voidable
Mistake - ANS Belief not in accord with the facts
Mutual Mistake - ANS Both parties share same wrong belief; contract is voidable by either
party
Unilateral Mistake - ANS Only one party is mistaken; generally no relief unless other party
knew or should have known
Assumption of Risk - ANS Party bears risk of mistake → cannot void contract
Effect of Fault - ANS Negligence does NOT bar recovery unless bad faith
Duress - ANS Wrongful threat/act that destroys free will
Physical Compulsion - ANS Force → contract is void
Improper Threat - ANS Economic/social pressure; contract is voidable
Fraud - ANS Voidable (unless execution; void)
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 7
ANSWERS 2026 VERIFIED.
Undue Influence - ANS Taking unfair advantage of a person due to a dominant/confidential
relationship; contract is voidable
Fraud in the Execution - ANS Misrepresentation about the nature of the document itself;
contract is void
Fraud in the Inducement - ANS Misrepresentation that leads someone to enter a contract;
contract is voidable
False Representation - ANS A false statement or misleading conduct about a material fact
Fact (Fraud) - ANS Must relate to an existing fact, not opinion or future prediction
Materiality - ANS Misrepresentation that would influence a reasonable person's decision
Scienter - ANS Knowledge the statement is false OR reckless disregard for truth + intent to
deceive
Justifiable Reliance - ANS Victim reasonably relied on the false statement
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 7
, Negligent Misrepresentation - ANS False statement made without due care; contract is
voidable
Innocent Misrepresentation - ANS False statement made with due care and no knowledge of
falsity; contract is voidable
Mistake - ANS Belief not in accord with the facts
Mutual Mistake - ANS Both parties share same wrong belief; contract is voidable by either
party
Unilateral Mistake - ANS Only one party is mistaken; generally no relief unless other party
knew or should have known
Assumption of Risk - ANS Party bears risk of mistake → cannot void contract
Effect of Fault - ANS Negligence does NOT bar recovery unless bad faith
Duress - ANS Wrongful threat/act that destroys free will
Physical Compulsion - ANS Force → contract is void
Improper Threat - ANS Economic/social pressure; contract is voidable
Fraud - ANS Voidable (unless execution; void)
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 7
