ApartmentsRUs, a property management firm, presents a standard-form lease for an apartment to Barnaby, a potential tenant. ApartmentsRUs does not pressure Barnaby to sign the lease, but offers it on a take-it-or-leave-it basis. Barnaby signs the lease, but later wants to withdraw from the contract. He is most likely to avoid enforcement of the lease on the ground of

At an auction for the first time, Dulcinea bids on a one-hundred-year-old Edison-brand phonograph, believing that it is worth more than the price asked. When the item proves to be less valuable, Dulcinea is

Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They be¬lieve the land to be worthless, but beneath it is a gold mine. Byron can

Camille, a tennis pro, convinces Dante, who has no athletic ability, that he has considerable skill and induces him to pay Camille $1,000 for tennis lessons. When Dante realizes the truth, he files a suit against Camille. Dante is most likely to recover on the basis of

Fact Pattern 15-B1 Digital Storage, Inc., offers to sell provide cloud-computing services to Entrepreneur Enterprises, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Entrepreneur Enterprises accepts the written offer. Refer to Fact Pattern 15-B1. Entrepreneur Enterprises’ best argument in favor of enforcement of the contract is that

Fact Pattern 15-B1 Digital Storage, Inc., offers to sell provide cloud-computing services to Entrepreneur Enterprises, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Entrepreneur Enterprises accepts the written offer. Refer to Fact Pattern 15-B1. Digital Storage’s best defense against enforcement of the contract is that Entrepreneur Enterprises knew

Fact Pattern 15-B2 Organic Farms Company contracts to buy two tracts of land from Prime Bottomland, Inc. Both parties believe that the two tracts are adjacent, but in fact they are not. Prime Bottomland is still willing to sell the land, but under these circumstances the deal would adversely affect Organic Farms. Refer to Fact Pattern 15-B2. The parties’ belief about the adjacency of the property is

Fact Pattern 15-B3 In selling a commercial building, Birdie tells Colt that the property has a certain capacity, making it suitable for a nightclub. Birdie knows nothing about the capacity of the building, but it is not as she specifies. Colt buys the building. Refer to Fact Pattern 15-B3. Under these circumstances, Colt’s best course of action is most likely to

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

Gene sells a trail bike to Hollis without disclosing that the odometer, which reads 10,000 miles, was disconnected 90,000 miles ago. Gene is most likely liable for

Nora enters into a contract with Oceanic Transport, Inc., to insure and ship a painting from France to the United States for a certain price. But Oceanic makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would

Raven, the owner of Strawberry Fields, contracts to sell its harvest to Tender Fruits, Inc. When Raven refuses to per¬form, Tender Fruits files a suit to enforce the contract. Raven and Tender Fruits are in a state that does not recognize the doctrine of unconscionability. To defend success-fully against enforcement of the contract on similar grounds, Raven might rely on traditional notions of

Ray buys a rural vineyard from Sergio, who claims that it would be a prime site for a housing subdivision. Ray later learns that the law does not permit the land to be used for housing. Ray may

A material fact is a fact that a reasonable person would consider important when determining his or her course of action.

A negligent misrepresentation is not a basis for rescinding a contract.

An innocent party can rescind a fraudulent contract and be restored to his or her original position.

Because fraud actions necessarily involve wrongful conduct, courts may award punitive damages.

Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract.

In some states, the courts prefer to rely on traditional notions of fraud, undue influence, and duress rather than the concept of unconscionability.

Many courts have broadened the concept of unconscionability to apply it in situations other than sales of goods.

Misrepresentation can occur by words or actions, but not by silence.

Misrepresentation of a material fact cannot occur through conduct alone.

Scienter clearly exists if a party knows a fact is not as stated.

The element of justifiable reliance requires the misrepresentation to be the sole factor in inducing the deceived party to enter into the contract.

When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.