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Chapter 11 problems

Chapter 11 problems - both ships to disclose this...

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Chapter 11 problems 2a. The court would not return the money to Davis because he cannot show any of the five defenses of fraud to make the contract void. There was no scienter because Johnson didn’t misstate a fact knowingly. He clearly stated that he “believed” the worth of the farm. 2b. Since Johnson lied about how much he paid for the farm; he knowingly lied to Davis which now gives birth to a fraud. Davis relied on that information to purchase the farm and if it weren’t for that information he wouldn’t have agreed to it. The court will give Davis his money back and Johnson his farm back. 3. There is still a contract. Because there was a unilateral mistake, the court will still uphold the contract in regards to the ship sailing in December because it is up to the person who knows of
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Unformatted text preview: both ships to disclose this information. 8. There is a contract because no mistake was made. The jeweler didn’t declare himself an expert and said, “I think”. 9. Because of undue influence, the deed should be declared invalid. The fiduciary relationship is between physician and the client which is declared by the law. And the dominant party cannot gain financially; in this case the physician did. 11. There will not be a rescission of the contract because the false representation of a fact must be made with or in regards to the contract. The false representation was formed after the agreement was formed so it doesn’t make any difference to the contract. 14. No fraud is evident because the statements made by the schools do not guarantee anything and are vague and not factual....
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