Ch. 10 Flashcards Preview

Business Law > Ch. 10 > Flashcards

Flashcards in Ch. 10 Deck (16):
1

Meeting of the minus

- We agreed to the same bargain requirements of an offer

2

Things that are not an offer

- Opinions, Preliminary, Negotiations, Advertisements, Auctions

3

5 Elements of Fraud

- First time a contract is voidable
1. Intent
2. Misrepresentation
3. Material Fact
4. Reasonable Reliance
5. Injury

4

Intent

- If you can prove that the other party was lying

5

Misrepresentation

- Words, conduct, and sometimes silence
- If there is a hidden defect, you must disclose that
- Courts expect "Puffery" aka an exaggeration
- All of the elements of fraud except intent

6

Material Fact ***

- Sometimes that is important to the tra

7

Reasonable Reliance

- What would a reasonable person think?

8

Injury

- You can sue for damages

9

Undue Influence

- Someone that is in a position of trust abused there position

10

Duress

- You force a party to enter a contract by threatening them with a wrongful act (includes blackmail & extortion)

11

Mistake

1. Is it a mistake in judgement or fact?
2. Is it unilateral or bilateral?
- Bi-lateral - Both parties mistake a material fact it is voidable by both parties
- Uni-lateral - Accounting or secretarian error

12

Consideration

- 2nd Element of Common Law contract
- Promises need consideration to be enforceable
- 2 parts: Has value, something exchanged for something else

13

Value

- Specifically legal sufficiency - legally detrimental

14

Pre-existing Duty Rule

- If you promise to do something that you had a prior legal obligation to do that is not detrimental and won't work

15

Moral Obligation

- Make a promise on what your heart or stomach was telling you

16

Past Consideration

- If you make a promise for something based on something from the past
- Past consideration is no consideration