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17 Cards in this Set
- Front
- Back
genuineness of assent
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Te requirement that a party's assent to a contract be genuine
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Rescission
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An action to undue a contract
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Unilateral mistake
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A mistake in which one party is mistaken about a material fact regarding the subject matter of a contract. Three types:
1. One party makes a unilateral mistake of fact, and the other party knew (or should have known) a mistake was made. 2. A unilateral mistake occurs because of a clerical or mathematical error that is a result of gross negligence. 3. The mistake is so serious that enforcing the contract would be unconscionable. |
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Mutual mistake of fact
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A mistake made by both parties concerning a material fact that is important to the subject matter of a contract.
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Material fact
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Fact important to the subject matter of a contract.
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Mutual mistake of value
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A mistake that occurs if both parties know the subject of the contract but are mistaken as to its value.
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Fradulent misrepresentation
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An event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation Also called fraud.
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To prove fraud what are the elements?
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The wrongdoer made a false representation of material fact.
The wrongdoer intended to deceive the innocent party. The innocent party justifiably relied on the misrepesentation. The innocent party was injured. |
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Material misrepresntation of fact.
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must be of a past or existing material fact. It has to have a significant factor in inducing the innorent party to enter into the contract.
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To have fraud you have to have
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A material misrepresentation of fact, intent to deceive, reliance on misrepresentation, and injury to the innocent party
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fraud in the inception
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Fraud that occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.
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Fraud in the inducement
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Fraud that occurs when the party knows what he or she is signing but has been fraudulantly induced into entering the contract.
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silence as misrepresentation
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1/ nondisclosure would cause bodily injury or death.
2. there is a fiduciary relationship (of trust and confidence) between contracting parties. 3. Federal and state statutes require disclosure. |
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Innocent misrepresentation
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Fraud that occurs when a person makes a statement of fact that he or she honestly and reasonably believes to be true even though it is not.
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Duress
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A situation where one party threatens to do a wrongful act unless the other party enters into a contract.
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Undue influence
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A situation in which one person takes advantage of another person's emotional, mental, or physical weakness and unduly persuades that person to enter into a contract; the persuasion by the wrongdoer must overcome the free will of the innocent party.
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Elements that must be shown to get undue influence
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A fiduciary or confidential relationship must have existed between the parties.
And the dominant party must have unduly used his influence to persuade the weaker party to enter into the contract. |