BUL chapter 17 Flashcards
(25 cards)
voidable
a contract without legal assent
rescinded
or canceled, permitting the person who cancelled the contract to require the return of everything she gave the other party
mistake of fact ***
an erroneous belief about the facts of the contract at the time the contract is concluded
unilateral ***
the result of error by one party about the material fact
material fact
a fact that is important in the context of the particular contract
mutual ***
mistakes shared by both parties to the agreement
unilateral mistake conditions ***
1) one party made a mistake about a material fact, and the other party knew or had reason to know about the mistake 2) the mistake was caused by a clerical error that was accidental and did not result from gross negligence 3) the mistake was so serious that the contract is unconscionable, that is , so unreasonable that it is outrageous
mutual mistake conditions ***
1)a basic assumption about the subject matter of the contract 2)a material effect on the agreement 3) an adverse effect on a party who did not agree to bear the rick of mistake at the time of the agreement
misrepresentation
an untruthful assertion by one of the parties about the material fact; it prevents the parties from having the mental agreement necessary for a legal contract
innocent misrepresentation
results from a false statement about a fact material to an agreement that the person making it believed to be true
scienter
from scio meaning to know
negligent misrepresentation ***
if one party could have known the truth by using reasonable care to discover or reveal it
fraudulent misrepresentation ***
a consciously false representation of a material fact intended to mislead the other party
intentional misrepresentation ***
also known as fradulent misrepresentation
fraudulent misrepresentation conditions ***
1)a false statement about a past or existing fact that is material to the contract 2) Intent to deceive, which can be inferred from the particular circumstances 3)Justifiable reliance on the false statement by the innocent party to the agreement
concealment
the active hiding of the truth about a material fact
nondisclosure
a failure to provided pertinent information about the projected contract
undue influence ***
special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade the other and interfere with that person’s ability to make his or her own decision
duress ***
occurs when one party is forced into the agreement by the wrongful act of another
duress conditions ***
physical harm or extortion, threat to file a criminal lawsuit, threat to the other party’s economic interests
unconscionably ***
when one party has so much more bargaining power than the other that he or she dictates the terms of the agreement
adhesion contract
the disproportional amount of power possessed by one party to the contract has made a mockery of the idea of free will, a necessity for legal consent
false assertion conditions ***
1) a relationship of trusts exists between the parties to the contract 2)there is failure to correct assertions of fact that are no longer true 3)A statute requires the disclosure 4)the nondisclosure involves a dangerous defect
justifiable reliance on the false statement by the innocent party to the agreement
justifiable reliance is generally present unless the injured party knew, or should have known by the extravagance of the claim, that the false statement was indeed false.
