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9 Cards in this Set

  • Front
  • Back
Status doctrines
1. Minority
2. Insanity
3. Intoxication
Q #1: who is considered a minor?
1. CL - age 21
2. Modernly - 18
Q #2: What are the consequences on the K?
a. Ratification - minor can still ratify K upon rsbl time. Minors allowed to contract for necessities.
i. 3 ways to ratify - express, implied, delay in ratification
b. Disaffirmance
3. Recovery in Quasi-K: Party who contracted with minor can get recovery only for FMV of necessities
Q#1: Who is considered mentally incompetent to contract?
a. Traditional view - (minority) - Cognitive test only - by virtue of a serious mental illness(winky-serious psychosis), party unable to understand nature and quality of acts
2. Restatement - majority view
i. Cognitive prong
ii. Volitional prong - inability to control actions and did the other party have reason to know of the illness. ask - did they hide it?
Q2: What are the consequences on the K?
a. Void - if general guardian appointed or formal adjudication of insanity before K formation. If you make a K before appointed guardianship, then it is considered voidable, after this has been done, it's just void.
b. Voidable at guardian's election
i. Ratify - guardian or if person regains competence
ii. Disaffirm - status quo ante, stricter than minority
Can avoid K if:
1. Unable to understand nature and consequences
2. Unable to act in reasonable manner in relation to transaction and other party had reason to know about intoxication

notes - vare rare that intoxication or insanity will get you out of K, insanity - try it for old people. intoxication - try it for meds. don't really see guardian appointed afterward either.
A. Physical duress - criminal or tortuous means
B. Economic duress- more common
1. P committed illegal act or threat
2. P's act placed D in a dire economic situation
3. Improper demand on D
4. Subjective element - D yielded to demand because of threat or act
5. Objective element - P had no other available means of preventing or avoiding loss
6. D had no alternatives but to yield to demand

C. Consequences - innocent party can elect to ratify or disaffirm the K
Misrepresentation - reduced this to handouts, don't spend too much time, look up in outline
A. Fraud in the factum (void) - misrepresentation of a type of doc (ie you dont let them read K, just ask to sign)
B. Fraud in the Inducement (voidable for innocent party if honest belief): D makes statement to P, D knows it's false, and P acts upon that statement. SAME AS FRAUD.
1. Trend
Subjective test for victim
- but for misrep, he/she wouldn't have entered into the K

C. Innocent misrepresentation(voidable for innocent party if reasonable belief and material fact. similar to mistake
D. Material breach of warranty (innocent party can set aside K)
E. Express warranty - UCC 2-313(1)(b) first representations become part of the K
A. General norms
1. Unilateral mistake -K enforceable unless other party induced or knew mistake (no relief granted
2. Mutual material mistake - K is voidable unless other party assumed risk
B. Types of mistakes
1. Intrinsic mistakes (mistakes about terms of agreement)
a. mistake about what speaker said
b. contents of document
c. Mistake in choosing words (slip of tongue)
d. Meaning - mutual mistake
e. Intermediary makes mistake (S/A)
i. maj - buyer bound
ii. minority - both parties can walk away
2. Extrinsic mistakes - (mistake about subject matter, fundamental, important error)
a. if mutual and material, either party can walk away unless assumed risk
b. if in gambling state of mind/assumption of risk - no relief from K
3. Exceptions to general norms
a. Collateral assumption of fact (computational errors). D allowed equitable relief if:
i. D mad mistake in collateral assumption of fact
ii. mistake was relatively innocent
iii. After discovering mistake, D notified P.
iv. P does not suffer any prejudice and can be returned to status quo
b. Ecnomic value: cts less likely to grant relief unless
i. Fiduciary relationship
ii. Expert
Economic inadequacy of consideration
A. Types of special equitable remedies
1. Specific performance
2. Prohibitory injunction
B. Special requirement - P must show inadequate remedy at law
1. Difficult of ascertaining the market value (ie one of a kind piece of art, difficult to ascertain FMV)
2. Difficulty of "covering"
C. Measure of damages
1. Expectation interest
2. Restitution interest
3. Reliance interest
2 sentences about this if you see a setup where someone is getting totally reamed