BUL 4421 Final - FAU Gendler Exam Questions with Correct Answers Latest Update
2025/2026
V. CHAPTER 17: Legal Assent - Answers V. CHAPTER 17: Legal Assent
Legal Assent - Answers Offer and acceptance; both parties agree to do the same thing.
Legal Assent is a promise - Answers courts will require parties to obey
Without it, the contract may be - Answers *voidable,* a circumstance that can cost a business
large profits when the transaction is significant.
A voidable contract can be - Answers *rescinded,* or canceled; permitting the person who
canceled the contract to require the return of everything she gave the other party
rules of rescission - Answers
Unilateral mistake - Answers Results from one party having an error about material facts.
Mistaken party can rescind or reorganize the contract.
Unilateral mistake generally does - Answers not void a contract; courts are hesitant to interfere
when one of the parties has a correct understanding of the material facts of the contract.
Mutual Mistakes - Answers Both parties have errors of material fact.
Under a mutual mistake, rescission is - Answers fair because any agreement was an illusion:
Ambiguity prevented a true meeting of the minds.
Misrepresentation - Answers An untruthful assertion about a material fact. This
Misrepresentation prevents - Answers a mental agreement necessary for a legal contract.
misrepresentation contracts lack - Answers legal assent
Types of Misrepresentations (3): - Answers 1. Innocent
2. Negligent
3. Fraudulent
Innocent misrepresentation - Answers Results from a false statement about a fact material to
an agreement that the party making it believed to be true
the misled person who fell victim to innocent representation lacked - Answers a scienter (latin
word for "knowledge")
an innocent, misled party may - Answers rescind the contract.
, an innocent, misled party may not - Answers sue for damages; the other party had no intent to
mislead
Negligent misrepresentation - Answers In some contract negotiations, one party makes a
statement of material fact that he thinks is true, but he could have known the truth by using
reasonable care to discover or reveal it and fails to do so.
A party guilty of negligent misrepresentation is treated as if - Answers he had intent to deceive;
they should have known the truth using skill and knowledge of a person in their
position/profession.
Any fraud on the part of a party to a contract provides a basis for - Answers recission
A fraudulent/intentional misrepresentation is - Answers A consciously false representation of a
material fact intended to mislead the other party.
parties cannot be said to have assented when - Answers one of the parties was tricked into
"agreement" by a fraudulent representation
agreement by a fraudulent representation can be - Answers rescinded on the basis that there
was no meeting of the minds
requirements for finding fraudulent misrepresentation (3) - Answers 1. a false statement about
a past or existing fact that is material to the contract
2. intent to deceive
3. justifiable reliance on the false statement by the innocent party to the agreement
justifiable reliance is generally present unless - Answers injured party knew, or should have
known by the extravagance of the claim, that the false statement was indeed false.
if damages are sought from fraudulent/intentional misrepresentation, defrauded party must -
Answers have been injured by the misrepresentation
Undue influence - Answers Refers to those special relationships in which one person takes
advantage of a dominant position in a relationship to unfairly persuade the other and interfere
with the person's ability to make his of her own decision.
Ex: disney exec
Courts may see the undue influence of the relationship as - Answers interfering with the free
choice required for an enforceable contract.
Contracts resulting from undue influence are - Answers voidable
the essential element of undue influence is - Answers the existence of a dominant-subservient
2025/2026
V. CHAPTER 17: Legal Assent - Answers V. CHAPTER 17: Legal Assent
Legal Assent - Answers Offer and acceptance; both parties agree to do the same thing.
Legal Assent is a promise - Answers courts will require parties to obey
Without it, the contract may be - Answers *voidable,* a circumstance that can cost a business
large profits when the transaction is significant.
A voidable contract can be - Answers *rescinded,* or canceled; permitting the person who
canceled the contract to require the return of everything she gave the other party
rules of rescission - Answers
Unilateral mistake - Answers Results from one party having an error about material facts.
Mistaken party can rescind or reorganize the contract.
Unilateral mistake generally does - Answers not void a contract; courts are hesitant to interfere
when one of the parties has a correct understanding of the material facts of the contract.
Mutual Mistakes - Answers Both parties have errors of material fact.
Under a mutual mistake, rescission is - Answers fair because any agreement was an illusion:
Ambiguity prevented a true meeting of the minds.
Misrepresentation - Answers An untruthful assertion about a material fact. This
Misrepresentation prevents - Answers a mental agreement necessary for a legal contract.
misrepresentation contracts lack - Answers legal assent
Types of Misrepresentations (3): - Answers 1. Innocent
2. Negligent
3. Fraudulent
Innocent misrepresentation - Answers Results from a false statement about a fact material to
an agreement that the party making it believed to be true
the misled person who fell victim to innocent representation lacked - Answers a scienter (latin
word for "knowledge")
an innocent, misled party may - Answers rescind the contract.
, an innocent, misled party may not - Answers sue for damages; the other party had no intent to
mislead
Negligent misrepresentation - Answers In some contract negotiations, one party makes a
statement of material fact that he thinks is true, but he could have known the truth by using
reasonable care to discover or reveal it and fails to do so.
A party guilty of negligent misrepresentation is treated as if - Answers he had intent to deceive;
they should have known the truth using skill and knowledge of a person in their
position/profession.
Any fraud on the part of a party to a contract provides a basis for - Answers recission
A fraudulent/intentional misrepresentation is - Answers A consciously false representation of a
material fact intended to mislead the other party.
parties cannot be said to have assented when - Answers one of the parties was tricked into
"agreement" by a fraudulent representation
agreement by a fraudulent representation can be - Answers rescinded on the basis that there
was no meeting of the minds
requirements for finding fraudulent misrepresentation (3) - Answers 1. a false statement about
a past or existing fact that is material to the contract
2. intent to deceive
3. justifiable reliance on the false statement by the innocent party to the agreement
justifiable reliance is generally present unless - Answers injured party knew, or should have
known by the extravagance of the claim, that the false statement was indeed false.
if damages are sought from fraudulent/intentional misrepresentation, defrauded party must -
Answers have been injured by the misrepresentation
Undue influence - Answers Refers to those special relationships in which one person takes
advantage of a dominant position in a relationship to unfairly persuade the other and interfere
with the person's ability to make his of her own decision.
Ex: disney exec
Courts may see the undue influence of the relationship as - Answers interfering with the free
choice required for an enforceable contract.
Contracts resulting from undue influence are - Answers voidable
the essential element of undue influence is - Answers the existence of a dominant-subservient
