Exam 2 Flashcards
(102 cards)
ability to understand that a contract is being made and to understand its general meaning
contractual capacity
original positions of the parties
statue quo ante
things indispensable or absolutely necessary for the sustenance of human life
necessaries
remedy by which a written instrument is corrected when it fails to express the actual intent of both parties because of fraud, accident, or mistake
reformation
making a false statement of a part or existing fact, with knowledge of its falsity or with reckless indifference as to its truth, with the intent to cause another to rely thereon, and such person does rely thereon and is harmed thereby
fraud
relationship in which, because of the legal status of the parties or their respective physical or mental conditions or knowledge, one party places full confidence and trust in the other
confidential relationship
influence that is asserted upon another person by one who dominates that person
undue influence
threat of physical harm to person or property
physical duress
threat of financial loss
economic duress
conduct that deprives the victim of free will and that generally gives the victim the right to set aside any transaction entered into under such circumstances
duress
promise or performance that the promisor demands as the price of the promise
consideration
refraining from doing an act
forbearance
promise that in fact does not impose any obligation on the promisor
illusory promise
cross out of part of an instrument or a destruction of the instrument, whether by act of party, upon breach by the other party, or pursuant to agreement or decree of court
cancellation provision
agreement among creditors that each shall accept a part payment as full payment in consideration of the other creditors doing the same
composition of creditors
something that has been performed in the past and which therefore, cannot be consideration for a promise made in the present
past consideration
doctrine that a promise will be enforced although it is not supported by consideration when the promisor should have reasonably expected that the promisor would induce action or forbearance of a definite and substantial character on the part of the promised and injustice can be avoided only by enforcement of the promise
promissory estoppels
equally guilty, used in refernce to a transaction as to which relief will not be granted to either party because both are equally guilty or wrongdoing
in pari delicto
absence of knowledge of any defects or problems
good faith
contract offered by a dominant party to a party with inferior bargaining power on a take it or leave it basis
contract of adhesion
certain objectives relating to health, morals, and integrity of govt that the law seeks to advance by declaring invalid any contract that conflicts with those objectives even though there is no statute expressly declaring such a contract illegal
public policy
any plan by which a consideration is given for a chance to win a prize, it consists of three elements, there must be a payment of money or something of value for an opportunity to win, a prize must be available, and the prize must be offered by lot or chance
lottery
lending money at an interest rate that is higher than the maximum rate allowed by law
usury
statute that, in order to prevent fraud through the use of perjured testimony, requires that certain kinds of transactions be evidenced in writing in order to be binding or enforceable
statute of frauds
