Blaw 5 - mistakes

lcarter's version from 2016-05-04 19:53

Section 1

Question Answer
Two forms of mistakes of factBilateral and Unilateral
BilateralBoth parties are mistaken and the contract can be rescinded by either party
UnilateralOne party is mistaken; Can be enforced unless other party knew of mistake or mistake is due to substantial math error
Mistake of ValueContract is enforceable
Fraudulent MisrepresentationInnocent party can rescind contract or enforce and seek damages

Section 2

Question Answer
Fraudulent Misrepresentation requirementsMisrepresentation of a material fact; Intent to deceive; Innocent party must justifiably rely on the misrepresentation
Methods of misrepresentationFact vs. opinion, Opinions from experts, By Conduct, Of law, By silence
Misrepresentation of lawWon't work as a defense because people have a duty to know the law
Misrepresentation by silenceGenerally doesn't set aside a contract
ScienterIntent to deceive; "Guilty Knowledge"

Section 3

Question Answer
Innocent MisrepresentationWhen a person actually believes what they said is true; Not considered fraud and other party can rescind or enforce
Negligent MisrepresentationMaking misrepresentation through carelessness of discovery; Treated as same as scienter
Justifiable relianceThird part of fraud, how reliable is the misrepresentation in the contract
Undue InfluenceWhen one party has such influence over another that their free will is basically gone
Presumption of Undue InfluenceWhen the dominating party benefits from the contract, the contract must be done in good faith

Section 4

Question Answer
DuressForcing a party to sign a contract; Must be done with an illegal act
Economic DuressWhen a party setting a price also creates the need
Adhesion ContractsTake it or leave it contracts
Standard-Form ContractsContracts that shifts risk to the other party
UnconscionableWhen the standard-form contract party has unequal bargaining power

Section 3

Section 3

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