Essay Business Law Text and Cases

635 Words Apr 10th, 2013 3 Pages
Chapter 12
Legal Value * Promise to do something that one has no PRIOR legal duty to do. * A performance of an action that one is not obligated to do * Refraining from an action that one has a legal right to do (forbearance)
Rescission- the opposite of forming a contract, and bring the parties to the positions they occupied before the contract was made
Past consideration- no consideration or a promise to give another something of value in return for goods or services rendered and delivered in the past
Accord and satisfaction- the settlement of a debt by paying less than the amount demanded in exchange for extinguishing the debt
Liquidated debt- one who amount was fixed, agreed on, settled, or determined.
Release- a
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Necessaries- include whatever is reasonably needed to maintain the minor’s standard of living
Ratification- the act of accepting and giving legal force to an obligation that previously was not enforceable.
Contracts Contrary to Statute * Statutes are set forth rules specifying which terms and clauses may be included in contracts and which are prohibited.

1. Contracts to commit a crime 2. Usury – lender who makes a loan at an interest above the lawful maximum 3. Gambling 4. Online gambling 5. Licensing statutes
Unconscionable- unreasonable or grossly unfair Chapter 14 (Mistakes Fraud, and Voluntary Consent) Mistakes of Fact Bilateral- mistake is made by both of the contracting parties Unilateral- mistake is made by only one of the contracting parties

Mistakes of Value Typical fradulalent misrepresentation consists of the following elements: * misrepresentation of a material fact must occur * There must be an attempt to deceive * The innocent party must justifiably rely on the misrepresentation * A party additionally must have been harmed as a result of misrepresentation Intent to Deceive Scienter- guilty knowledge, signifies that there was an intent to deceive Innocent misrepresentation- NOT FRAUD, (ex. measurement of land is wrong by person selling it) when an innocent

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