Chapter14 Fraud Mistake NEW

Chapter14 Fraud Mistake NEW - 1. Owen, a famous chef, sells...

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1. Owen, a famous chef, sells to Pat a restaurant that Owen closed years ago. Pat discovers in the restaurant a collection of Owen’s recipes, which are considered valuable. In a suit to obtain the recipes, Owen will likely a. not prevail because he should have known that the recipes were in the restaurant. b. not prevail because the sale of a restaurant includes everything in it. c. prevail because there was no mutual assent. d. prevail because the sale of a restaurant includes nothing in it. Fact Pattern 14-B1 (Questions B2–B3 apply) Gert contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Gert is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. 2. Refer to Fact Pattern 14-B1. The parties’ belief about the adjacency of the property is a. a bilateral mistake. b. a fraudulent misrepresentation. c. a unilateral mistake. d. unconscionable. 3. Refer to Fact Pattern 14-B1. Because of the parties’ belief about the adjacency of the property, their contract is a. unavoidable.
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b. unconscionable. c. unenforceable. d. voidable. 4. Hillside Homes, Inc., and Ideal Builders, Inc., enter into a construction contract that includes six pages of detailed calculations. Later Hillside, whose project manager compiled the figures, discovers that some numbers were multiplied incorrectly, but Ideal refuses to make changes. A court would most likely a. allow the parties to rescind the contract. b. award damages to A for the mistakes. c. award damages to B for the mistakes. d. enforce the contract without requiring changes. 5. At an auction for the first time, Max bids on an object, believing
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This note was uploaded on 05/18/2011 for the course BUSINESS 2041 taught by Professor Miller during the Fall '08 term at DeAnza College.

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Chapter14 Fraud Mistake NEW - 1. Owen, a famous chef, sells...

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