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23 Cards in this Set
- Front
- Back
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Statute of Frauds |
Was designed to prevent perjury and fraud with respect to land and titles
Deals with types of contracts that must be in writing |
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Six contracts that must be in writing under the Statute of Frauds |
1. Guarantee (responsible for obligations of another 2. Agreement to be responsible for the torts of another (now or in the future) 3. Agreement of an executor to be responsible for the debts of an estate 4. Marriage agreements (pre-nups and separation) 5. Long-term agreements (not scheduled to be completed within a year) 6. Land |
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What is the one exception to the Statute of Frauds? |
Doctrine of Part Performance |
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Doctrine of Part Performance |
A verbal agreement is enforceable if: 1. Land Only 2. Otherwise enforceable agreement (all other criteria of a contract are met) 3. One of the parties performs acts to the land 4. Hardship occurs |
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Minimum requirements for a written memorandum |
1. Must identify the parties 2. Sets out basic terms (will always include mutual consideration) 3. Must be signed by the party against whom you would sue |
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Parol Evidence Rule |
Court will not accept evidence of verbal discussions for agreements that precede a written contract.
Verbal discussions after may be taken into account
Covers all written contracts whether they were bound to be written or not |
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What are the exceptions to Parol Evidence Rule? (4) |
1. Explaining an ambiguous term in the contract 2. Condition Precedent 3. Implied terms 4. Collateral agreement |
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Condition Precedent |
An event that must happen before a contract can become enforceable |
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Implied terms |
Terms that are assumed under the conditions.
Example: You assume that the tires are included when you buy a car.
If an agreement is contrary to the implied terms, verbal discussions preceding the written contract can be taken into account
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Collateral agreements |
A side agreement with its own mutual consideration contingent on the original agreement |
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4 things that can cause a contract to be unenforceable |
1. Duress 2. Undue Influence 3. Mistake 4. Misrepresentation |
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Duress |
Uses physical force or a threat of physical force or extortion |
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Undue Influence |
Under the influence of a dominant party |
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Two types of mistakes |
Unilateral mistake - contract is enforceable
Bilateral (mutual) mistake - contract is unenforceable |
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3 variations of Mistake |
1. Mistake as to the existence of subject matter (mutual) 2. Mistake as to identity. (unilateral, mutual). Where identity is relevant. 3. Non Est Factum. |
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Mistake as to the existence of subject matter. Requirement. |
Ex. Before Ralph died. Subject matter must be unique
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Non Est Factum |
"Not my doing"
Unable to read or get assistance |
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Rectification of a Contract (mutual) |
Court can correct a clerical error.
1. Has to be a clerical error 2. Neither party was aware when they signed 3. Clear, unambiguous contract 4. No intervening negotiations |
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Misrepresentation |
It is a misstatement of a material fact
If you would have known, you wouldn't have bought it
Could be a lie or a misstatement |
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Three Types of Misrepresentation |
Innocent (negligent) Fraudulent Misrepresentation by Non-Disclosure |
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Innocent (negligent) misrepresentation and result |
A false statement of a material fact made by a party who honestly believed the fact to be true.
The result is rescission (revocation of contract) and/or expenses |
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Fraudulent misrepresentation and result |
A false statement of fact made by a person who knows it is false and made with the intention of deceiving another
Result is rescission and/or expenses and damages |
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Misrepresentation by Non-Disclosure (or by Omission) |
Deals with contracts of utmost good faith 1. Insurance 2. Partnership Contracts 3. Agency Agreements 4. Trust Agreements
Even if they don't ask, you must volunteer information |
