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26 Cards in this Set
- Front
- Back
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Mutual Mistake |
Both parties are mistaken (ex. third party making a mistake causing confusion) |
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Unilateral Mistake |
One party makes mistake Agreement is enforceable unless: - the other party knew or should have known about the mistake - a significant mathematical error in terms made inadvertently |
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Elements of Fraudulent Misrepresentation |
1. Misrepresentation on material of fact 2. Must be an intent to deceive 3. Innocent party must justifiably rely on the misrepresentation 4. A party must have been harmed as a result (in order to collect damages) |
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Selleck v. Cuenca |
Selleck bought a horse from Cuenca. Cuenca gave him papers about the horse but misrepresented the horse. Selleck was awarded $120,000 for purchase price of horse PLUS $67,000 for "reliance or special damages" which covered the cost of the stable/food/etc. or money to cover the things the defrauded party otherwise would not have purchased |
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Undue Influence |
a stronger party overcomes a weaker party’s free will by exerting psychologicalinfluence |
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Duress |
one party was forced into the contract |
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Privity of Contract |
right to the terms of a contract (vs. incidental beneficiary. ex. restaurant benefiting from city sports team, team leaves city, restaurant can't sue because no privity) |
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Third Party Beneficiary |
intended or incidental, reap benefits of a contract |
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Material Breach |
- substantial that is so substantial it denies the obligee of their bargained for consideration. - innocent party is excused from performance and has the right to sue for damages |
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Minor Breach |
- creates inconvenience but is not significant. - innocent party can sue but cannot slip out of obligation to provide consideration |
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Magic Language - "of the essence" |
"time is of the essence" - signal of agreement that says the parties have decided to make the consideration of time a substantial part of the agreement |
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Discharge by Agreement: by mutual rescission |
Parties must make another agreement, consideration |
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Discharge by Agreement: by novation |
new contract with substitution of a third party for one of the original parties. original is specifically discharged |
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Discharge by Agreement: by settlement agreement |
compromise, both sides have modified obligations |
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Discharge by Agreement: accord and satisfaction |
discharge original contract with new terms of performance * similar to settlement agreement but only ONE party |
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Damages: compensatory |
- driving force of contracts - those harmed are only entitled to what they bargained for in the enforceable contract |
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Damages: consequential |
- damages caused by special circumstances not immediately attributable to breach at a given time (ex. lost profits) - breaching party must know or have reason to know the other would suffer additional loss |
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Damages: punitive |
- meant to punish - fraud or other egregious conduct * not common in contract law |
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Damages: nominal |
- designed to reinforce law - if no real injury occurs *not often in contract law |
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Damages: liquidated |
situation in which one or both parties agree that if someone breachesthe agreement the quantum of damages for one side or the other or both would betoo difficult to figure out in a precise way as a result of the nature of thetransaction. In case of breach, the breaching party owes the nonbreaching partyX. Purpose is to make it easy for nonbreaching party to recover. Only majorcriteria is they must be reasonable |
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Damages: mitigation requirement |
P must minimize damages or financial injury |
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The Parol Evidence Rule |
prevents the introduction of evidence of prior or contemporaneous negotiations and agreements that contradict, modify, or vary the terms ofa written contract when the written contract is intended to be a complete andfinal expression of the parties’ agreement. (rationale; if you intended it to be part of the parties’agreement, you’d have to put it in there before signing) |
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Equitable Remedies: rescission |
undo or terminate a contract; may be unilateral where fraud, duress, etc. is present |
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Equitable Remedies: restitution |
- mutual return of goods, property, or funds to facilitate a rescission - made whole again, back where you originally were |
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Equitable Remedies: special performance |
- order to do or not do something (ex. restraining order) - courts don't like doing this because a form of judicially imposed slavery - exception is land transactions (each piece of land is unique) |
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Equitable remedies: reformation |
the power of the court to "rewrite" the entire or partial agreement between parties to which they are then legally bound |
