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Chapter 7

Law chapter 7

TermDefinition
genuine assent agreement to enter into a contract that is evidenced by words or conduct between the parties
voidable contract in which the injured party can withdraw, thus cancelling the contract
rescission backing out of the transaction by asking for the return of what you gave and offering to give back what you received
ratification acting toward the contract as though one intends to be bound by it; principal’s assent to unauthorized acts of an agent
duress occurs when one party uses an improper threat or act to obtain an expression of agreement
undue influence occurs when one party to a contract is in a position of trust and wrongfully dominates the other party
unilateral mistake occurs when one party holds an incorrect belief about the facts related to a contract
mutual mistake both parties to a contract have an incorrect belief about an important fact
material facts important facts that influence both parties’ decisions about a contract
void without legal effect
innocent misrepresentation party to a contract does not know that a statement he or she made is untrue
fraudulent misrepresentation party to a contract knows that a statement he or she made is untrue
fraud intentional misrepresentation of an existing, important fact
Created by: 1103128
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