Flashcards in Chapter 14 Deck (20):
The age at which an individual is considered legally capable of conducting himself or herself responsibly
Age of majority
The legal avoidance or setting aside of a contractual obligation
Minor who is freed of parental control U
When a minor chooses to disaffirm a contract he or she can choose which parts of the contract
No must disaffirm all not merely a portion
A usurious contract involves
An illegally high interest rate
The creation of risk for the purpose of assuming it
Courts generally presume contractual capacity.
t or f
If a mistake concerns the future market value or quality of the object of the contract the mistake is one of VALUE and....
The contract is typically enforceable
Why contracts are enforceable despite mistakes of value.
Value is variable depending on time, place and other circumstances
In the case of fraudulent misrepresentation the innocent part can either rescind the contract or enforce the contract and seek damages for any harms resulting from the fraud
Elements typically needed for fraudulent misrepresentation
1. Misrepresentation of material fact must occur
2. Must be intent to deceive
3.innocent party must justifiably rely on the misrepresentation
4. To collect damages, a party must have been harmed as a result of the misrepresentation
Misrepresentation can occur by
Misrepresentation by conduct
Also Occurs when a party takes specific action to conceal a fact that is material to the contract
Statements of opinions and representation of future facts are generally ....
Not subject to claims of fraud
When a naïve purchaser relies on an opinion for an expert the innocent party may be
Entitled to revision or reformation
Misrepresentation of law.
Generally does not entitle a party to relief because people are assumed to know state and local laws
When misrepresentation of law does entitle a party to relief
When the misrepresenting party is in a profession that requires a greater knowledge of the law than an average citizen.
This constitutes fraud
Misrepresentation by silence
Most of the time party's do not have to volunteer pertinent info. But the cannot misrepresent, and they DO have a duty to disclose LATENT DEFECTS ( defects that could not readily be ascertained)
People in a fiduciary relationship
Must disclose material facts. Failure to do so may constitute?