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30 Cards in this Set
- Front
- Back
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Even if facts and circumstances surrounding a case indicated that the parties reached an agreement, what must the agreement be to be enforceable?
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Voluntary
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Contracts entered into as a result of misrepresentation, fraud, duress, undue influence, and certain kinds of mistakes are
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voidable.
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To cancel a contract
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rescind.
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If no performance has been rendered, an injured party may inform the other party that they
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disaffirm
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The person who waits for an unreasonable time after discovery to complain may be held to have
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ratified the contract and will lose power to disaffirm.
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One of the parties to a contract creaed in the mind of the other party a mistaken impression about an important fact or facts concerning the subject of the contract.
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Misrepresentation
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A person seeking to avoid a contract on the ground of misrepresentation must prove what elements?
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misrepresentation of material fact justifiably relied on to the detriment of the person relying
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Can misrepresenation result from an honest mistake or negligence?
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yes
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A fact that would contribute to a reasonable person's decision to enter a contract
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material fact
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An actionable misrepresentation must concern a __________ fact.
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present or past.
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Can statements of future events or statements of opiong serve as a basis for recission?
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No
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Two ideas behind making justifiable reliance an element of misrepresentation.
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1)There should be some casual connection between a misrepresentation and the complaining party's entry into the contract.
2) Parties who enter a contract must take reasonable step to discover the facts about the contract they enter into. |
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The courts do no allow a person who claims to have been victimized by a misrepresentation to cancel the contract unless he or shee can show some _________ as a result of the misrepresentation.
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detriment
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Intentional misrepresentation
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Fraud
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To prove fraud, one must prove all the elements of misrepresentation plus two additional elements:
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that the misrepresentation was 1) knowingly made with the
2) intent to decieve (aka scienter) |
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The mental state of the defendant
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Scienter
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What is caveat emptor?
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Let the buyer beware
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Can you be held guilty of fraud if you faild to disclose material facts?
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Yes
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Involves misstatements about the content or legal effect of something usually contained in a form or preprinted contract.
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Fraud in the execution
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Options for remedies of fraud
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rescind the contract or affirm the contract and sue in tor for damage resulting from the fraud.
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Elements of fraud are the same as the elements of what tort?
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deceit
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One of the parties by making some threat of harm forced the other party to enter an agreement he or she would not have otherwise entered.
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Duress
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The dominant person in a confidential relationship took advantage of the other party to the relationship by gettng the other party to enter into an unfavorable agreement.
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undue influence
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Contracts made under duress and undue influence are voidable because
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the injured pary has been deprived of the ability to make a free choice.
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Modern courts require that the threat of duress be
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wrongful.
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The basic idea of undue influence is to protect
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the elderly, the timid and the physically or mentally weak.
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Used in contract law to describe the situation in which one or both of the parties to an agreement acted under an untrue belief about the existence or nonexistence of a material fact
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Mistake
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A basis for granting recission of the contract at the request of either party
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mutual mistake
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Ways mutual mistakes can arise.
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Parties may unintentionally use a term in their agreement that is ambiguous or mistaken about the subject matter of their agreement.
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If only one of the parties to the agreement is acting under a mistake, it is not grounds for recission.
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unilateral mistake.
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