Contract Law: Mistakes and Fraud

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When is a contract considered voidable due to fraud?

When one party commits serious fraud and the other party would not have entered into the contract without it (correct)

When there is a mere expression of opinion

When both parties commit fraud

When there is a mistake of account

What is the requirement for a contract when one party is unable to read or the contract is in a language not understood by them?

The contract must be translated

The contract is valid without any explanation

The terms of the contract must be fully explained to them (correct)

The contract is void

What is the consequence of a mistake of account in a contract?

No mistake if the parties knew the risk affecting the object of the contract (correct)

The contract is rescinded

The contract is voidable

The contract is void

What is the rule on fraud when there is a failure to disclose facts that need to be revealed?

It is considered fraud and the contract is voidable Signup and view all the answers

What is the consequence of incidental fraud in a contract?

The contract is valid and the party is liable for damages Signup and view all the answers

Which type of contract requires a public instrument to be valid?

Partnership where real property/rights is contributed Signup and view all the answers

What is the consequence of violence in a contract?

The contract is void Signup and view all the answers

What is the remedy available in equity when there is an error or mistake in a written instrument?

Reformation of instruments Signup and view all the answers

What is the reason for reformation of instruments when one party is mistaken and the other knew or believed the instrument did not state their real agreement?

Mistake Signup and view all the answers

When is reformation of instruments not available?

When the real agreement is void Signup and view all the answers

What is the type of donation that does not require a public instrument and is not subject to reformation of instruments?

Simple donation intervivos with no condition Signup and view all the answers

What is the condition for the reformation of instruments in a case of mortgage or pledge?

The instrument states the property is sold absolutely Signup and view all the answers

What is a lesion in a contract?

An inadequacy of cause, such as an insufficient price for a thing sold Signup and view all the answers

What is the result of an absolute simulation of a contract?

It is a void contract Signup and view all the answers

Under what circumstances can a contract be invalidated due to lesion?

If there is fraud, mistake, or undue influence Signup and view all the answers

What is the purpose of the requisites of object of contract?

To ensure that the contract is valid and enforceable Signup and view all the answers

What is the result of a relative simulation of a contract?

The parties are bound to the true agreement, except in certain circumstances Signup and view all the answers

What are the two forms of contracts?

Contracts in writing and contracts in a public instrument Signup and view all the answers