BUL3310 FSU Bailey Unit 7 Final Exam
and All Correct Answers 2025-2026
Updated.
Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is
a. Valid
b. Void
c. Voidable by Mike
d. Voidable by Mike or Allen - Answer Voidable by Mike
Having lost his job in the recent recession and facing property taxes that were past due, Ed was
desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser for value at a
price that was well below its market value. Ed now regrets this decision and asks if he has any
legal basis for rescinding the contract. Please advise Ed.
a. Yes, he can rescind the contract based on a unilateral mistake of value.
b. Yes, he van rescind the contract based on innocent misrepresentation
c. Yes, he can rescind the contract based on economic duress
d. No, this was a valid bargained for exchange with a good faith purchaser for value - Answer
No, this was a valid bargained for exchange with a good faith purchaser for value.
Beth agreed to buy Sam's home for 400,000. After both parties had signed the contract, which
was prepared by the real estate agent, it was discovered that the property was listed on the
contract as 1200 Elm Street instead of 200 Elm Street, the actual house number. The remedy
courts use to correct mistakes like this in contracts is
a. Restitution
b. Reformation
c. Rescission
d. Respondent superior - Answer Reformation
British Textile Manufacturer entered into a contract with Cotton Broker for 2,000 bales of cotton
to be shipped from India to England on the ship "Peerless, sailing from Bombay." The contract
was silent about the shipping date. Buyer expected the cotton to be shipped on the Peerless
that sailed from Bombay in October; seller expected to ship the cotton on the Peerless that
sailed from Bombay in December. By the time the second ship arrived in England, buyer had
found another supplier and refused to accept the cotton. Does manufacturer have any defenses
, d. No, the buyer should have double checked the shipping date. - Answer Yes, there was a
bilateral mistake of material fact
Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had belonged to
her uncle. Sue told Ann that she thought the mower was about 3 years old. When getting parts
for the mower, Ann learned that the mower was in fact 7 years old. Ann can rescind the contract
based on
a. Duress
b. Undue influence
c. Fraudulent misrepresentation
d. Innocent misrepresentation - Answer innocent misrepresentation
The legal status of a contract entered into by someone who has been adjudicated insane is
__________.
a. Valid
b. Void
c. Avoidable only by the person adjudicated insane
d. Avoidable by either party to the contract. - Answer Void
Among the following, which party has a fiduciary responsibility?
a. The executor of a will
b. The guardian of a minor child
c. The director of a corporation
d. All of the above have a fiduciary responsibility. - Answer All of the above have a fiduciary
responsibility.
t/f If there is a clerical error in a contract, a court will order the equitable remedy of quantum
meruit to correct the error. - Answer false
t/f A unilateral mistake of fact is grounds for rescinding the contract. - Answer false
Once a contract has been ratified, the ratifying party loses the right to ________.
a. Disaffirm the contract.
and All Correct Answers 2025-2026
Updated.
Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is
a. Valid
b. Void
c. Voidable by Mike
d. Voidable by Mike or Allen - Answer Voidable by Mike
Having lost his job in the recent recession and facing property taxes that were past due, Ed was
desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser for value at a
price that was well below its market value. Ed now regrets this decision and asks if he has any
legal basis for rescinding the contract. Please advise Ed.
a. Yes, he can rescind the contract based on a unilateral mistake of value.
b. Yes, he van rescind the contract based on innocent misrepresentation
c. Yes, he can rescind the contract based on economic duress
d. No, this was a valid bargained for exchange with a good faith purchaser for value - Answer
No, this was a valid bargained for exchange with a good faith purchaser for value.
Beth agreed to buy Sam's home for 400,000. After both parties had signed the contract, which
was prepared by the real estate agent, it was discovered that the property was listed on the
contract as 1200 Elm Street instead of 200 Elm Street, the actual house number. The remedy
courts use to correct mistakes like this in contracts is
a. Restitution
b. Reformation
c. Rescission
d. Respondent superior - Answer Reformation
British Textile Manufacturer entered into a contract with Cotton Broker for 2,000 bales of cotton
to be shipped from India to England on the ship "Peerless, sailing from Bombay." The contract
was silent about the shipping date. Buyer expected the cotton to be shipped on the Peerless
that sailed from Bombay in October; seller expected to ship the cotton on the Peerless that
sailed from Bombay in December. By the time the second ship arrived in England, buyer had
found another supplier and refused to accept the cotton. Does manufacturer have any defenses
, d. No, the buyer should have double checked the shipping date. - Answer Yes, there was a
bilateral mistake of material fact
Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had belonged to
her uncle. Sue told Ann that she thought the mower was about 3 years old. When getting parts
for the mower, Ann learned that the mower was in fact 7 years old. Ann can rescind the contract
based on
a. Duress
b. Undue influence
c. Fraudulent misrepresentation
d. Innocent misrepresentation - Answer innocent misrepresentation
The legal status of a contract entered into by someone who has been adjudicated insane is
__________.
a. Valid
b. Void
c. Avoidable only by the person adjudicated insane
d. Avoidable by either party to the contract. - Answer Void
Among the following, which party has a fiduciary responsibility?
a. The executor of a will
b. The guardian of a minor child
c. The director of a corporation
d. All of the above have a fiduciary responsibility. - Answer All of the above have a fiduciary
responsibility.
t/f If there is a clerical error in a contract, a court will order the equitable remedy of quantum
meruit to correct the error. - Answer false
t/f A unilateral mistake of fact is grounds for rescinding the contract. - Answer false
Once a contract has been ratified, the ratifying party loses the right to ________.
a. Disaffirm the contract.
