Contract Law: Vitiating Elements Online Test - Questions and Answers

What is a unilateral mistake?

Both parties are mistakenNeither party is mistakenOnly one party is mistakenThe mistake is made by a third party

What is economic duress?

Physical threat to a personIllegal pressure affecting a person's willPressure applied through economic meansDuress that causes economic loss

What is fraudulent misrepresentation?

A false statement made innocentlyA false statement made carelesslyA false statement made with the intent to deceiveA true statement that deceives the other party

What results from contracts formed under undue influence?

They are voidThey are voidableThey are validThey are unenforceable

What is the impact of illegality on a contract?

It makes the contract voidableIt makes the contract validIt makes the contract voidIt has no impact

Can a mutual mistake void a contract?

YesNoOnly if it is a minor mistakeOnly if it is a major mistake

Can economic duress be grounds for voiding a contract?

Yes, alwaysNo, neverOnly in commercial contractsOnly in non-commercial contracts

Does negligent misrepresentation make a contract void or voidable?

VoidVoidableEitherNeither

What is presumed undue influence?

There is clear evidence of influenceInfluence arising from a relationship of trust and confidenceInfluence that is obvious and directInfluence in business transactions

Can a contract be illegal if it was legal at the time of formation?

YesNoDepends on the jurisdictionOnly if it becomes immoral

Does a mistake need to be reasonable to void a contract?

Yes, alwaysNo, neverOnly in mutual mistakesOnly in unilateral mistakes

Is physical violence a requirement for duress?

Yes, alwaysNo, neverOnly in some casesOnly if it leads to injury

Can silence amount to misrepresentation?

Yes, alwaysNo, neverYes, if there is a duty to discloseYes, but only in writing

Can undue influence occur in commercial relationships?

YesNoOnly in employmentOnly between businesses

Is it possible to enforce any term of an illegal contract?

Yes, alwaysNo, neverOnly if the term is moralOnly if it does not involve criminal conduct

Does a mistake of law provide grounds to void a contract?

YesNoOnly if the mistake is reasonableOnly if both parties are mistaken

Does duress always lead to a void contract?

YesNoOnly if there is violence involvedOnly in non-commercial contracts

Can an opinion be a misrepresentation?

YesNoOnly if it is a professional opinionOnly if it leads to a contract

Does undue influence always involve exploitation?

YesNoOnly in familial relationshipsOnly in financial transactions