Chapter 15 Mistakes, Fruad And Voluntary Consent Flashcards Preview

Business Law > Chapter 15 Mistakes, Fruad And Voluntary Consent > Flashcards

Flashcards in Chapter 15 Mistakes, Fruad And Voluntary Consent Deck (34):
1

Mistake of fact must involve a fact that a reasonable person would consider important when determining his or her course of action

Material fact

2

To void contract based upon a mistake

Mistake of fact

Material fact

3

Unilateral vs bilateral mistake

Unilateral is typically still enforceable I

4

Unilateral mistakes

Exceptions to enforceability

1. Other party knows of should have known about the mistake of fact

2.the error was due to a substantial mathematical mistake made inadvertently.

*must be material fact in both cases*

5

When both parties are mistaken about the same material fact, the contact can be ...

Rescinded at any time

6

When parties attach materially different meaning to a word/term in a contract a court may allow the contract to be rescinded because there was no true ...

" meeting of the minds"

7

Only a mistake of.... Makes a contract voidable

Fact NOT value or quality

8

Scienter clearly exists if a party ----

Knows a fact is not as stated.

- makes a statement recklessly without regard to wether it is true or false

- party says or implies that a statement is made on some basis( personal knowledge/ investigation) when it is not

9

If a person makes a false statement that they believe to be true but that actualy misrepresents that material facts the person is not guilty of fraud but--

Innocent misrepresentation

10

Aggrieved party in the case of innocent misrepresentation can seek--

To rescind the contract but generally cannot collect damages

11

If a party misrepresents via carelessness/ does not exersizes the skill and competence that her or his perfession requires then the misrepresentation may constitute

Negligent misrepresentation

12

Negligent misrepresentation is treated as---- even though the misrepresentation was not purposeful

Fraudulent misrepresentation

13

The deceived party must have a justifiable reason for relying on the misrepresentation

T or f

T

14

To recover damages by fraud proof of harm is ----

Universally required

15

Most courts do not require proof of injury to rescind the contract

T or f

T

16

Fraudulent damages can include punitive as well as the proved actual loss.


T or f

T

17

Undue influence arises when

Based upon a relationship one party can greatly influence another party, thus overcoming that parties free will.

18

The essential feature of undue influence is that the party being taken advantage of does not----

In reality, exersizes free will in entering into a contract.

Must be clear and convincing evidence

19

When a contract enriches the dominant party, the court will often presume that the contract was made ---

Under undue influence

20

The use of threats to force a party into contract

Duress

21

To establish duress, there must be

Proof of a threat to do something that the threatening party has no right to do

22

A court would normally find the threat of a civil suit to be duress

T or f

F

23

Economic duress is typically not sufficient to constitute duress

T or f

T

24

Only a mistake of----- makes a contract voidable

Fact

25

To make a contract voidable on the basis of mistake of fact the fact must be

Material fact

26

When one party makes a mistake they can

Do nothing because the contract is enforceable

27

Even when a unilateral mistake is made a contract may be enforceable if the other party to the contract knows or should have known that a mistake of fact was made

True of false

True

28

A substantial mathematical al mistake that was made without gross negligence will allow a unilateral mistake to be eligible for relief

True or false

True

29

In a bilateral situation of the mistake relates to the value of quality of the subject matter either party can -------- the contact

Enforce

30

When an innocent party is fraudulently induced into a contract the contract can normally be avoided because that party has not voluntarily consented to its terms

True or false

True

31

A seller preventing a buyer from learning of some fact that is material would constitute

Misrepresentation by conduct

32

If the dominant party is enriched then courts often assume

Undue influence

33

Most adhesion contracts are standard-form contracts that contain fine print provisions that shift a risk ordinarily born by one party to another

True or false

True

34

Section ? Of the UCC permits the court to refuse a clause or contact based upon unconscionably

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