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Flashcards in Chapter 14 Deck (20):
1

The age at which an individual is considered legally capable of conducting himself or herself responsibly

Age of majority

2

The legal avoidance or setting aside of a contractual obligation

Disaffirmance

3

Minor who is freed of parental control U

Emancipated

4

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

5

A usurious contract involves

An illegally high interest rate

6

Gambling is

The creation of risk for the purpose of assuming it

7

Courts generally presume contractual capacity.

t or f

T

8

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

9

Why contracts are enforceable despite mistakes of value.

Value is variable depending on time, place and other circumstances

10

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

True!

11

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

12

Misrepresentation can occur by

Words
Or actions

13

Misrepresentation by conduct

Also Occurs when a party takes specific action to conceal a fact that is material to the contract

14

Statements of opinions and representation of future facts are generally ....

Not subject to claims of fraud

15

When a naïve purchaser relies on an opinion for an expert the innocent party may be

Entitled to revision or reformation

16

Misrepresentation of law.

Generally does not entitle a party to relief because people are assumed to know state and local laws

17

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

18

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)

19

People in a fiduciary relationship
Must disclose material facts. Failure to do so may constitute?

Fraud

20

What signifies intent To deceive?

"Guilty knowledge"

Knowledge on the part of the misrepresenting party that the facts have been falsely represented

SCIENTER