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BLW 201 10TH ED CHAPTER 14 T/F SELF QUIZ



True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

When both parties are mistaken as to the same material fact, neither party can rescind the contract.
 

 2. 

If the parties to a contract attach materially different meanings to a contract term, the contract cannot be rescinded.
 

 3. 

A contract is always enforceable even if one party is aware that the other party made a mistake of fact.
 

 4. 

If a price quotation contains a mistake in the adding of a number of figures, the contract may not be enforceable.
 

 5. 

Mistakes in judgment as to value or quality will permit one to avoid a contract.
 

 6. 

Overestimating the value of an object is a mistake for which a court will normally provide relief.
 

 7. 

An innocent party can enforce a fraudulent contract.
 

 8. 

One of the elements of fraudulent misrepresentation is an adhesion contract.
 

 9. 

A statement of opinion is generally subject to a claim of fraud.
 

 10. 

Reliance on a non-expert's statement of opinion will not normally entitle a party to relief.
 

 11. 

An expert's false statement to a naive buyer about a technical detail will not usually entitle the buyer to rescind a contract.
 

 12. 

An act of concealment, with an affirmative misrepresentation, will not be sufficient to give rise to an action for fraud.
 

 13. 

One of the elements of fraudulent misrepresentation is intent to deceive.
 

 14. 

A seller's failure to volunteer certain pertinent information about a product for sale will never give rise to an action for fraud.
 

 15. 

Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.
 

 16. 

To rescind a contract for fraud, a plaintiff must prove an injury.
 

 17. 

To serve as a basis for an action for fraudulent misrepresentation, a misleading statement must be consciously false.
 

 18. 

A contract entered into under duress is voidable.
 

 19. 

Economic need is always sufficient to constitute duress.
 

 20. 

An adhesion contract can occur in a one-sided transactions in which one party has substantially superior bargaining power.
 



 
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