Chapter 13-Vocab

Question 0

Minor

Answer 0

Someone under the age of 18

Question 1

Capacity

Answer 1

Legal ability to enter into a contract

Question 2

Disaffirm

Answer 2

To give notice of refusal to be bound by an agreement

Question 3

Rescind

Answer 3

Cancellation of a contract

Question 4

Restitution

Answer 4

Restoring an injured party to its original position

Question 5

Ratification

Answer 5

Words or actions indicating an intention to be bound by a contract

Question 6

Necessaries

Answer 6

Something essential to the minors life and welfare. EX: food, clothing, housing, and medical care

Question 7

Mental impairment

Answer 7

A person suffering from a mental impairment if by reason of mental illness or defect he is unable to understand the nature and consequences of the transaction

Question 8

Misrepresentation

Answer 8

A factually incorrect statement made during contract negotiations

Question 9

Innocent misrepresentation

Answer 9

If the owner believes the statement to be true and has good reason for that belief

Question 10

Fraudulent misrepresentation

Answer 10

If the owner knows that statement is false

Question 11

Fraudulent statement

Answer 11

Statement is fraudulent if the maker intended to induce the other party to contract, either knowing that her words were false or uncertain that they were true

Question 12

Material statement

Answer 12

Statement is material if the maker expected the other party to rely on her words in reaching an agreement

Question 13

Bilateral mistake

Answer 13

Occurs when both parties negotiate based on the same factual error

Question 14

Unilateral mistake

Answer 14

Occurs when only one party enters a contract under a mistaken assumption

Question 15

Duress

Answer 15

An improper threat made to force another party to enter into a contract