Question

1. What was the court's decision in Lucy v. Zehmer?

a. The claim made by Lucy was inconsistent with his attempt to testify in great detail as to what was said and what was done.

b. The writing signed by the defendants did not constitute a binding contract of sale between the parties

c. At no time prior to the execution of the contract had Zehmer indicated to Lucy by word or act that he was not in earnest about selling the farm.

d. The mental assent of the parties is not requisite for the formation of a contract

2. Which of the following is true about undue influence?

a. It is a harsher form of duress.

b. The unfairness does not lie in any misrepresentation.

c. Usually the fact pattern involves the victim receiving advice from most people except the persuader.

d. The perpetrator threatens the victim to assent to the contract.

3. Which of the following is true of fraudulent misrepresentation?  

a. A fraudulent misrepresentation is a crime.   

b. If a statement of fact is made false by later events, it must be disclosed as false.   

c. A half-truth cannot amount to misrepresentation.  

d. A typist's unnoticed error in a letter cannot amount to misrepresentation.

4. Which of the following is true about persons who are mentally ill?

a. A contract made by a person who is mentally ill is still non-voidable by the person after regaining sanity.

b. If a guardian has been legally appointed for a mentally ill person, any contract made by the latter is valid and can be ratified by the ward.

c. If a contract is for a necessity, the other party to the contract cannot claim against the estate of the one who is mentally ill.

d. In a contract for necessity, only if a mental illness impairs the competence of the person in the particular transaction can the contract be avoided.

Answer 1

Q 1.
Answer: d. The mental assent of the parties is not requisite for the formation of a contract.

Q 2.
Answer: b. The unfairness does not lie in any misrepresentation. This is true about undue influence

Q 3.
Answer: b. If a statement of fact is made false by later events, it must be disclosed as false. This is true about fraudulent misrepresentation.

Q 4.
Answer:d. In a contract for necessity, only if a mental illness impairs the competence of the person in the particular transaction can the contract be avoided.