©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 2:49PM A+
ACCT 2700 Ostendorf - Test 4 Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Mistake that might allow a contract to be cancelled - Answer✔mistake of material fact
Mistake made by one party (generally still enforceable) - Answer✔Unilateral mistake
Mistake that is a mutual understanding by both parties - Answer✔Bilateral mistake
Mistake about future value or quality of the object of the contract - Answer✔mistake of value
Innocent party induced to enter contract by a misrepresentation may avoid the contract
because he/she did not genuinely consent - Answer✔Fraudulent Misrepresentation
Required elements for misrepresentation - Answer✔Misrepresentation of material fact, intent
to deceive, justifiable reliance on misrepresentation, injury to the innocent party
Party takes specific action to conceal a fact that is material to the contract -
Answer✔Misrepresentation by contract
Statement that is generally, not considered to be fraudulent - Answer✔statement of opinion
Misrepresentation that ordinarily does not entitle a party to relief - Answer✔Misrepresentation
of law
Misrepresentation in which neither party has duty to disclose facts -
Answer✔Misrepresentation by silence
Knows a fact is not as stated, makes a statement he believes is not true, makes a statement
recklessly, says a statement is made based on personal knowledge when it is not -
Answer✔Scienter
Misrepresentation that occurs when a person makes a statement, he believes to be true but
actually misrepresents facts - Answer✔Innocent misrepresentation
Misrepresentation that fails to use reasonable care - Answer✔negligent misrepresentation
1
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 2:49PM A+
Deceived party must have justifiably relied on the misrepresentation - Answer✔Justifiable
reliance
Not required to rescind the contract; but required if the innocent party seeks to recover
damages - Answer✔Injury
Arises from relationships in which one party can greatly influence another party (lacks consent)
- Answer✔Undue influence
One party dominates the other - Answer✔Fiiduciary relationships
When contract enriches the dominant party, court will often presume undue influence -
Answer✔Presumption
A party who enters a contract under fear or threat makes the contract voidable -
Answer✔duress
Generally, not sufficient on its own to constitute duress - Answer✔economic duress
Contracts that require a writing - Answer✔Marriage contracts, contracts which cant be
performed within a year, contracts which involve interests in land, executor contracts, contracts
for the sale of goods worth over $500, surety contracts
[Exception to writing requirement] court may grant specific performance such as an equitable
remedy - Answer✔partial performance
[Exception to writing requirement] Court may stop a person from denying a contract exist -
Answer✔promissory estoppel
[Exception to writing requirement] party admits a contract exists - Answer✔Admissions
Statute of frauds requires a '_____________________ (written or electronic) signed by the
party against whom enforcement is sought - Answer✔Written Memorandum'
Oral representations or promises made prior to the contract's formation or at the time the
contract was created may not be admitted in court - Answer✔parole evidence rule
When determining whether to admit parole evidence, courts consider whether the contract is
intended to be _____________ - Answer✔complete
Only original parties to a contract have rights and liabilities under the contract - Answer✔Privity
of contract
3 exceptions to privity of contract - Answer✔Assignment, delegation, third party beneficiary
contract
[Exception to privity of contract] transfer of contractual rights - Answer✔assignment
Party assigning rights to third party - Answer✔assignor
2
ACCT 2700 Ostendorf - Test 4 Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Mistake that might allow a contract to be cancelled - Answer✔mistake of material fact
Mistake made by one party (generally still enforceable) - Answer✔Unilateral mistake
Mistake that is a mutual understanding by both parties - Answer✔Bilateral mistake
Mistake about future value or quality of the object of the contract - Answer✔mistake of value
Innocent party induced to enter contract by a misrepresentation may avoid the contract
because he/she did not genuinely consent - Answer✔Fraudulent Misrepresentation
Required elements for misrepresentation - Answer✔Misrepresentation of material fact, intent
to deceive, justifiable reliance on misrepresentation, injury to the innocent party
Party takes specific action to conceal a fact that is material to the contract -
Answer✔Misrepresentation by contract
Statement that is generally, not considered to be fraudulent - Answer✔statement of opinion
Misrepresentation that ordinarily does not entitle a party to relief - Answer✔Misrepresentation
of law
Misrepresentation in which neither party has duty to disclose facts -
Answer✔Misrepresentation by silence
Knows a fact is not as stated, makes a statement he believes is not true, makes a statement
recklessly, says a statement is made based on personal knowledge when it is not -
Answer✔Scienter
Misrepresentation that occurs when a person makes a statement, he believes to be true but
actually misrepresents facts - Answer✔Innocent misrepresentation
Misrepresentation that fails to use reasonable care - Answer✔negligent misrepresentation
1
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 2:49PM A+
Deceived party must have justifiably relied on the misrepresentation - Answer✔Justifiable
reliance
Not required to rescind the contract; but required if the innocent party seeks to recover
damages - Answer✔Injury
Arises from relationships in which one party can greatly influence another party (lacks consent)
- Answer✔Undue influence
One party dominates the other - Answer✔Fiiduciary relationships
When contract enriches the dominant party, court will often presume undue influence -
Answer✔Presumption
A party who enters a contract under fear or threat makes the contract voidable -
Answer✔duress
Generally, not sufficient on its own to constitute duress - Answer✔economic duress
Contracts that require a writing - Answer✔Marriage contracts, contracts which cant be
performed within a year, contracts which involve interests in land, executor contracts, contracts
for the sale of goods worth over $500, surety contracts
[Exception to writing requirement] court may grant specific performance such as an equitable
remedy - Answer✔partial performance
[Exception to writing requirement] Court may stop a person from denying a contract exist -
Answer✔promissory estoppel
[Exception to writing requirement] party admits a contract exists - Answer✔Admissions
Statute of frauds requires a '_____________________ (written or electronic) signed by the
party against whom enforcement is sought - Answer✔Written Memorandum'
Oral representations or promises made prior to the contract's formation or at the time the
contract was created may not be admitted in court - Answer✔parole evidence rule
When determining whether to admit parole evidence, courts consider whether the contract is
intended to be _____________ - Answer✔complete
Only original parties to a contract have rights and liabilities under the contract - Answer✔Privity
of contract
3 exceptions to privity of contract - Answer✔Assignment, delegation, third party beneficiary
contract
[Exception to privity of contract] transfer of contractual rights - Answer✔assignment
Party assigning rights to third party - Answer✔assignor
2
