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10 Cards in this Set
- Front
- Back
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Fraud can be defined as |
a deliberate deception intended to secure an unfair gain. |
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When an individual chooses not to reveal information, it is called |
passive fraud, concealment, and non disclosure
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When a person signs an agreement, he or she is bound to it. |
TRUE ( Your signature shows that you agree to the terms set forth in the contract, even if you didn't read it or can't read English.) |
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To prove fraud, the innocent party must |
show some monetary loss. |
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A unilateral mistake is |
an error on the part of one of the parties of the contract. |
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When a bilateral mistake occurs, neither party may avoid the contract. |
FALSE (Also called mutual mistakes, bilateral mistakes allow for either party to avoid the contract.) |
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Threats to a person's business or income causing a contract to be entered into without real consent is called |
economic duress. |
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An example of undue influence is the requirement of a merchant to pay a fee for protection. |
FALSE (This is an example of economic duress.) |
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To be held accountable for fraud, the party making the false representation must know it is false. |
TRUE (This may be shown by proving actual knowledge or by showing that the statement was made recklessly.) |
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The law does not give you the right to rescind a contract even when innocent misrepresentation occurs. |
FALSE (Sometimes people make innocent statements that turn out to be false. However, if the person believed the statement was true, than the law does give you the right to rescind the contract.) |
