Business Law 12.1

  1. unilateral mistakes
    when only one party is mistaken about a material fact regarding the subject matter of a contract
  2. legal consequences of unilateral mistake
    • 1. general rule; mistaken party not allowed to rescind
    • 2. exceptions; other party took advantage, clerical or mathematical error, unconscionable
  3. mutual mistakes of fact
    both parties mistaken about the essence or object of a contract, either rescind
  4. mutual mistake of value
    both parties know the object of a contract but are mistaken as to its value, niether may rescind
  5. elements of fraud
    • false representation of material fact
    • intent to decieve
    • relied on misrepresentation
    • injured
  6. legal consequence for fraud
    • rescind contract and obtain restitutions
    • enforce contract and sue for damages
  7. fraud in the inception
    innocent person decieved as to the nature of act
  8. fraud in the inducement
    fraudulantly induces another party to enter into a contract
  9. fraud by concealment
    takes specific action to conceal fact
  10. silence as misrepresentation
    wrongdoer remains silent when under legal obligation to disclose a fact
  11. misrepresentation of law
    professional who should know law intentionally misrepresents law
  12. innocent misrepresentation
    when unintentionally make assertaion not witth facts, innocent party may rescind contract but not recover damages. not fraud
  13. undue influence
    one person takes advantage of another persons mental, emotional, or physical weaknessand unduly persuades a person to enter a contract, unenforceable
  14. elements of undue influence
    • fiduciary or confidential relationship existed between parties
    • dominant party used unfluence
  15. duress
    occurs when one party threatens to do some wrongful act unless other party enters a contract, unenforceable, physical duress and extortion
  16. economic duress
    refusal to perform contractual duties unless contract or other changes, must prove no other options
  17. promissory estoppel
    equitable doctrine that prevents the application of the statute of frauds. permits the enforcement of oral contracts that should otherwise be in writing under the statute of frauds to prevent injustice or unjust enrichment
  18. parol evidence rule
    if a written contract is a complete intergration, any prior contemporaneous oral or written statements are inadmissible as evidence to alter or contradict the terms of the written contract
  19. exceptions to parol evidence rule
    • prove mistake, ect
    • ambiguous language
    • prior dealing between parties
    • fill in gaps of contract
    • correct obvious clerical or typographical errors
  20. bilateral mistake
    must be material to void
  21. collateral promise
    must be in writing, unless benefit
  22. exceptions to illegal contracts
    • justifiable ignorance
    • fraud, duress, etc
    • protected class
Card Set
Business Law 12.1
genuineness of assent and statute of frauds