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Crosscreek County and Bridgework Corporation enter into a construction contract that includes mathematical specifications. Later Crosscreek, whose engineer, Damon, compiled the specs, learns that some of the dollar figures are incorrect. Bridgework r
rescind the contract on the basis of fraud.
fraud
reform the contract to reflect the figures accurately
rescind the contract to invest in the Web site.
innocent misrepresentation.
avoid the contract or choose to carry it out.
voidable by Cover-All because the omission is material to its decision to issue coverage.
true
Bret is convicted of arson for burning down his warehouse to collect the in-surance. On an application for insurance from Cover-All Insurance Company on a new building, in answer to a question about prior convictions, Bret does not disclose his convi
rescind the contract on the basis of fraud.
fraud
reform the contract to reflect the figures accurately
rescind the contract to invest in the Web site.
innocent misrepresentation.
avoid the contract or choose to carry it out.
voidable by Cover-All because the omission is material to its decision to issue coverage.
true
Gina induces Hu to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features. When Hu discovers the truth, Hu can
rescind the contract on the basis of fraud.
fraud
reform the contract to reflect the figures accurately
rescind the contract to invest in the Web site.
innocent misrepresentation.
avoid the contract or choose to carry it out.
voidable by Cover-All because the omission is material to its decision to issue coverage.
true
Nero makes an honest but erroneous statement that misrepresents a material fact in a contractual transaction with Odell. Nero is guilty of
rescind the contract on the basis of fraud.
fraud
reform the contract to reflect the figures accurately
rescind the contract to invest in the Web site.
innocent misrepresentation.
avoid the contract or choose to carry it out.
voidable by Cover-All because the omission is material to its decision to issue coverage.
true
Sylvia creates a profile for Today’s Date, Inc., an online dating service. She exaggerates her appealing features and posts a photo of her friend Uva, whom Sylvia thinks is prettier. Enticed by the profile, Van subscribes to the service so that he ca
rescind the contract on the basis of fraud.
fraud
reform the contract to reflect the figures accurately
rescind the contract to invest in the Web site.
innocent misrepresentation.
avoid the contract or choose to carry it out.
voidable by Cover-All because the omission is material to its decision to issue coverage.
true
Sam uses duress to force Tanya to agree to pay him for protecting her re¬tail store—Tanya’s Trends—against vandalism and destruction. Tanya may
rescind the contract on the basis of fraud.
fraud
reform the contract to reflect the figures accurately
rescind the contract to invest in the Web site.
innocent misrepresentation.
avoid the contract or choose to carry it out.
voidable by Cover-All because the omission is material to its decision to issue coverage.
true
A contract written exclusively by one party and presented to the other party on a take-it-or-leave-it basis is an adhesion contract.
rescind the contract on the basis of fraud.
fraud
reform the contract to reflect the figures accurately
rescind the contract to invest in the Web site.
innocent misrepresentation.
avoid the contract or choose to carry it out.
voidable by Cover-All because the omission is material to its decision to issue coverage.
true
Cartier, an accountant, convinces his client Bianca to sign a contract to invest her savings in a nonexistent social-networking Web site. When Bianca learns the truth, she can
rescind the contract on the basis of fraud.
fraud
reform the contract to reflect the figures accurately
rescind the contract to invest in the Web site.
innocent misrepresentation.
avoid the contract or choose to carry it out.
voidable by Cover-All because the omission is material to its decision to issue coverage.
true
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