Contracts - Defenses to Formation Flashcards
(26 cards)
Are K’s with a minor valid?
Voidable at the option of the minor
A minor can ratify the contract upon reaching the age of majority.
What happens to a contract once a minor reaches the age of majority?
The contract can be ratified at the new terms set by the minor
The minor may choose to enforce the contract at a new price once they are of age.
What is the effect of entering into a contract with someone who has a mental disease?
The contract is void
Contracts with individuals deemed legally insane are not enforceable.
What constitutes duress in contract law?
A wrongful threat that coerces a party to enter into a contract
Example: A threat of violence or intimidation.
What is undue influence in contract law?
An unfair bargaining position that affects the consent of a party
Imbalance
This often occurs when one party has more power or status than the other.
What is the definition of unconscionability in contract law?
A result of the contract that is so unfair it is deemed unconscionable
Focus is on the outcome of enforcing the contract rather than bargaining conditions.
does not include difference in price
What is the enforceability of illegal contracts?
Illegal contracts are unenforceable
Entering into a contract for illegal purposes is not valid.
What is a unilateral mistake in contract law?
A mistake made by one party about a term in the contract
Generally not a defense unless:
1) the other party knew about the mistake or
2)there was a clerical error.
What is a mutual mistake?
Both parties are mistaken about a material term of the contract
This can serve as a defense and typically leads to rescission of the contract (e.g. the animal fertility cases)
What is the remedy for a mutual mistake?
Rescission of the contract
Rescission restores parties to their positions prior to the contract.
What is intentional misrepresentation?
A false statement made with the intent to induce reliance
The party making the statement did so with scienter (Scienter, knew or should have known it was false).
What is negligent misrepresentation?
A false statement made without intent but with an omission or error causing the innocent party to detrimentally rely
The party did not intend to deceive but failed to provide accurate information.
When are non-compete clauses enforceable?
Good Essay Topic
Reasonable under the circumstances
Factors include duration and geographic scope.
What is the significance of the term ‘oral’ in contract law?
Indicates that the contract may not comply with the statute of frauds
If a contract is only discussed and not written, it may not be enforceable.
What is the statute of frauds?
A legal concept requiring certain contracts to be in writing to be enforceable.
Which contracts fall under the statute of frauds
Contracts involving:
* Marriage
* Year-long performance
* Sale of land (or leases) (part performance exception)
* Executor contracts
* Guarantor or surety agreements (unless self-serving)
* Sale of goods over $500 (*part performance exception)
What is the exception to the statute of frauds for contracts that cannot be performed within one year?
If the contract has been fully performed.
What must be in writing for sale of land under the statute of frauds?
Sale of an interest in land, including leases.
What is part performance in relation to the statute of frauds?
Payment of something of value and either possession or improvements made on the land or part performance for sale of goods is an exception to the SOF
What must a guarantor agreement include to be enforceable under the statute of frauds?
It must be in writing unless it benefits the guarantor.
What is the requirement for a sale of goods to be enforceable under the statute of frauds?
It must be in writing if the sale is for $500 or more.
What is an exception to the statute of frauds regarding the sale of goods?
Part performance, such as partial delivery or payment takes K outside of SOF
What is a merchant confirmation exception to the statute of frauds?
A written confirmation of an order, including amount, by one merchant to another acts as a writing sufficent for SOF if not objected to within 10 days.
What is a writing re: SOF
- Parties,
- subject matter,
- basic material terms, and
- signature by the party to be charged (any marking)
could even be a napkin
