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7 Cards in this Set
- Front
- Back
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Voluntary Consent |
Knowledge of, and genuine assent to, the terms of a contract. Without it, an otherwise valid contract will be unenforceable. No genuine meeting of the minds without it May be lacking because of mistake, fraudulent misrepresentation, undue influence, or duress. |
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Unilateral Mistakes |
A mistake that occurs when one party to a contract is mistaken as to a material fact.
Generally does not give the give the mistaken party right to relief from the contract, meaning the contract is normally enforceable against the mistaken party.
Has two exceptions:
1. The other party knows or should have known that a mistake was made
2. The error was due to a significant mathematical mistake in addition, subtraction, division, or multiplication and was made inadvertently without gross negligence. |
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Material Fact |
A fact to which a reasonable person would attach importance in determining his or her cause of action. |
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Bilateral Mistake |
* A mistake that occurs when both parties to a contract are mistaken about the same material fact.
1. mutual misunderstanding concerning a basic assumption on which the contract was made.
2. Contract can be rescinded when both parties are mistaken about the same material fact.
3. Usually voidable by the adversely affected party and can be rescinded.
4. Word or term in a contract may be subject to one or more reasonable interpretation
5. If the parties attach materially different meanings to the term, their mutual misunderstandings may allow the contract to be rescinded.
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scienter |
Knowledge by a misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive. generally signifies intent to deceive exists if a party knows that a fact is not stated statement made known not to be true or statement made recklessly implied statement made on some basis such as personal knowledge or personal investigation, when it is not. |
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Undue Influence |
Persuasion that is less than actual force but more than advice and that induces a person to act according to the will or purposes of the dominating party.
contracts lack voluntary consent and are voidable
In various types of relationships, one party may have an opportunity to unfairly influence and dominate another party, such as minors and elderly people under the influence of guardians.
Party may take advantage of another for personal gain.
Can arise from confidential and fiduciary relationships, such as attorney-client.
party being taken advantage of does not exercise free will in entering into a contract.
physical or mental impairment not enough; there must be clear and convincing evidence that the person did not act out of his free will.
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Duress |
Unlawful pressure brought to bear on a person, overcoming the person's free will and causing him or to do what he or she otherwise would not have done. ex: force, blackmail, extortion Both a defense to enforcement of a contract and a ground for recission of a contract. Must be proof of threat to establish duress, and the threatened act must be wrongful, illegal, and render the personal incapable of exercising his free will. threatening to sue someone is usually is not duress. |
