SOLVED

26) Although there are some exceptions, a[n] ________ mistake does not generally void a contract. A) Clear B) Unclear C) Mutual D) Single E) Unilateral 27) Either party can choose to ________ the contract in cases where both parties to a contract are mistaken about either a current or a past material fact. A) Refute B) Confirm C) Rescind D) Disclaim E) Uphold 28) Ben says he will sell Catalina a ring that he found in his yard. Ben and Catalina look at the ring and decide that they are not sure what it is, probably just a shiny stone. Catalina pays Ben $10 for the ring. The ring turns out to be a diamond worth much more than $10. Ben wants the ring back, and Catalina refuses. What is the most likely result? A) The ring will be returned to Ben because of equity. B) The ring will be returned to Ben because of unilateral mistake. C) The ring will be returned to Ben because of mutual mistake. D) The ring will remain with Catalina unless Ben can establish that he was negligent in not recognizing the ring’s true value. E) The ring will remain with Catalina because the parties contracted on the assumption that they did not know the value of the ring. 29) Which of the following is true regarding the elements that must be satisfied in order for a mutual mistake to interfere with legal consent? A) The required elements are: (1) a basic assumption about the subject matter of the contract, (2) a material effect on the agreement, and (3) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement. B) The required elements are: (1) a basic assumption about the subject matter of the contract, and (2) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement. C) The required elements are: (1) a basic assumption about the subject matter of the contract, (2) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement, (3) a material effect on the agreement, and (4) fraud. D) The required elements are: (1) a basic assumption about the subject matter of the contract, and (2) an admission by one of the parties that a misrepresentation occurred. E) The required elements are: (1) a basic assumption about the subject matter of the contract, and (2) a material effect on the agreement. 30) What was the result in the Peerless case discussed in the text in which there were two ships named Peerless and the parties disagreed over which ship was the subject of the contract? A) The court ruled that the defendant would be allowed to choose which ship would be identified to the contract. B) The court ruled that the plaintiff would be allowed to choose which ship would be identified to the contract. C) The court rescinded the contract. D) The court ruled that the older ship would be identified to the contract. E) The court ruled that the newer ship would be identified to the contract. Â Â