Reference no: EM133937653

Question 1.

1. What are the two types of duress?

2. Distinguish between fraudulent misrepresentation and nonfraudulent misrepresentation, between fraud in the execution and fraud in the inducement, and between negligent and innocent misrepresentation.

3. Why is relief usually not granted for unilateral mistakes? When is relief granted for them?

4. Ivar, an infant, bought a used car-not a necessity-for $9,500. Seller took advantage of Ivar's infancy: the car was really worth only $5,500. Can Ivar keep the car but disclaim liability for the $4,000 difference?

5. Chauncey, a college student, worked part-time in a restaurant. After he had worked for several months, the owner of the restaurant discovered that Chauncey had stolen $2,000 from the cash register. The owner called Chauncey's parents and told them that if they did not sign a note for $2,000, he would initiate criminal proceedings against Chauncey. The parents signed and delivered the note to the owner but later refused to pay. May the owner collect on the note? Why?

Question 2.

1. Alice promises to give her neighbor a blueberry bush; the neighbor says, "Thank you!" Subsequently, Alice changes her mind. Is she bound by her promise?

2. What is meant by "legally sufficient" consideration?

3. What theories are used to enforce charitable subscriptions?

4. Hornbuckle purchased equipment from Continental Gin (CG) for $6,300. However, after some of the equipment proved defective, Hornbuckle sent CG a check for $4,000 marked "by endorsement this check is accepted in full payment," and CG endorsed and deposited the check. May CG force Hornbuckle to pay the remaining $2,300? Why?