SOLVED

16) Zara and Wahid have a lot of money invested with a stockbroker named Dion and also with other brokers. Zara and Wahid decided to divorce. Zara was really interested in investments, so the divorce decree provided that Zara would retain “all investment accounts,” and Wahid would receive a “cash settlement” from funds the parties had in the bank. Six months after the divorce was final, it was discovered that Dion had absconded to parts unknown with all the money invested with him. Zara could have withdrawn the funds at the time of the divorce, before Dion left town, but she had no reason for concern and left the funds there for investment purposes. After discovering Dion’s wrongdoing, Zara asked Wahid to renegotiate the divorce agreement, but he refused. Which of the following is the most likely result of their dispute if the court follows the decision of the court in Simkin v. Blank, discussed in the text? A) The original divorce agreement will be rescinded, and the parties will be required to renegotiate the agreement because, regardless of whether or not Dion was guilty of fraud, the end result is that Zara did not receive the benefit of her bargain. B) The original divorce agreement will be rescinded, and the parties will be required to renegotiate the agreement because Zara and Wahid were mutually mistaken in regard to investing with Dion. C) The original divorce agreement will be rescinded, and the parties will be required to renegotiate the agreement because the investment accounts with Dion were a significant basis of the divorce agreement, and Dion’s fraud caused termination of that contract. D) The original divorce agreement will be enforced only in part because based on their mutual mistake in regard to investing with Dion, the parties will be required to renegotiate the part of the contract involving the investments with Dion. E) The original divorce agreement will be enforced. 17) involves a promise to buy or sell that the courts will require the parties to obey. A) Bilateral assent B) Legal assent C) Contractual affirmance D) A special agreement E) Legal affirmance 18) Without legal assent a contract may be ________. A) Void B) Voidable C) Illegal D) Unmarketable E) Unchargeable 19) A voidable contract may be ________. A) Chargeable B) Deassented C) Rescinded D) Reassented E) Uncharged 20) Which of the following was the result on appeal in the Case Opener involving the claim that Michael Jordan owed $5 million based on his agreement to pay the plaintiff’s mother on the premise that he was the father, although it was later determined that the child was not his? A) That the agreement to pay $5 million could be rescinded based on a mutual mistake of fact. B) That the agreement to pay $5 million could not be rescinded because Jordan waited too long in which to complain about the contract. C) That the agreement to pay $5 million could be rescinded based on the mother’s fraud. D) That the agreement to pay $5 million could be rescinded based on either a mutual mistake of fact or based on the mother’s fraud. E) That the agreement to pay $5 million could not be rescinded because Jordan was aware of a question about his parentage. Â Â