Exaggeration is an element of fraud.

The party on whom duress is exerted can choose to carry out the contract.

Open Range agrees to sell Pinewood Ranch a remote parcel of land for $15,000. Both parties believe the land to be worthless, but beneath it is shale rock containing oil. A court would

Even if the defects on a piece of property are obvious, the buyer can justifiably rely on the seller’s misrepresentations concerning those defects.

Voluntary consent to a contract is not lacking if one of the parties is mistaken about an important fact concerning the subject matter of the bargain.

Hua applies to Inventory Corporation for a position as a coder. Hua has no training in coding. After Hua is hired, Inventory learns the truth. The employer can rescind the contract on the basis of

Car Lot’s salesperson Dirk offers to sell Espy, who is twenty years old, a car. Dirk intentionally misrepresents the vehicle’s use and repairs. In reliance, Espy buys the car. To prove fraud, Espy does not have to show that

Denis sells a motorcycle to Elton without disclosing that the odometer, which reads 10,000 miles, was disconnected 100,000 miles ago. Denis is most likely liable for

Consent to the terms of a contract is voluntary even if one of the parties is forced into the agreement.

Undue influence can arise from a confidential relationship or a relationship based on trust.

Analytics LLC processes misinterpreted data furnished by Botch Services to propose a marketing plan for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of

In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if

An otherwise valid contract is enforceable even if the parties have not genuinely agreed to its terms.

Ray, an employee of Shipping Company, makes a substantial mathematical mistake in totaling estimated transportation costs for Tonnage Inc., which is seeking bids. Consequently, Shipping’s bid is substantially low. Any contract with Tonnage that includes the mistake may be rescinded

  

Orin, an employee of Plumbing LLC, makes a substantial mathematical mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing’s bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded

Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Ralph can

  

Reliance on a misrepresentation is justified even if the innocent party knows the true facts.

In selling a 300-acre tract to Organic Farm, Peyton tells the buyer that the land “will be worth twice as much by next year.” This statement is not likely to support rescission of the contract because it is

Mary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Neil enters into a contract to buy “Mary’s ATV” for $750. Mary believes, in good faith, that she is selling the $500 ATV. Neil believes, in good faith, that he is buying the $1,000 ATV. In this situation

For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not as stated.

Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise’s best argument in favor of enforcement of the contract is

A fact that is important and central to the subject matter of a contract is a material fact.

A party who can show that he or she did not genuinely agree to the terms of a contract has a defense against its enforcement.