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This is where one or both of the parties to a contract have erroneous belief about the subject matter, value, or some other aspect of the contract.
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This occurs when only one party is mistaken about a material fact regarding the subject matter of the contract.
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Chapt 13
Genuiness of Assent and undue influence
| Question | Answer |
|---|---|
| This is where one or both of the parties to a contract have erroneous belief about the subject matter, value, or some other aspect of the contract. | Mistake |
| This occurs when only one party is mistaken about a material fact regarding the subject matter of the contract. | Unilateral mistakes |
| What are the 3 types of situations where a contract is not enforced due to a unilateral mistake? | 1) One party makes a mistake of fact and the other party should have known.2) A clerical or mathematical mistake was made and is not the result of gross negligence. 3) The mistake is severe to the point where its enforcement is unconscionable. |
| This is a fact that is important to the subject matter of a contract. | Material fact |
| This is a mistake of fact where one of the parties may rescind the contract? | mutual mistake of a past or existing material fact. |
| This exists if both parties know the object of the contract but are mistaken to its value. | Mutual mistake of value |
| This is an intentional misrepresentation when one person consciously decides to induce another person to rely and act on a misrepresentation. | fraudulent misrepresentation or fraud |
| What must be shown to prove contract fraud? | 1) The wrongdoer made a false representation of material fact 2) the wrongdoer intended to deceive the innocent party 3) The innocent party justifiably relied on the misrepresentation 4) The innocent party was injured |
| This may occur by words (oral or written) or by the conduct of a party. | Misrepresentation |
| To prove fraud, the person making the misrepresentation must have either had knowledge that the representation was false or made it without sufficient knowledge of the truth? | Scienter (guilty mind) |
| To prove fraud the misrepresentation must have been made with what? | Intent to deceive |
| A misrepresentation is not actionable unless the innocent party to whom the misrepresentation was directed acted on it. | Reliance on Misrepresentation |
| To recover damages, the innocent party must prove that the fraud caused him or her economic what? | Injury |
| This 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. | Fraud in the inception or fraud in the factum |
| This is when the innocent party knows what he or she is signing or doing but has been fraudulently induced to enter into the contract. | Fraud in the inducement |
| This occurs when one party takes specific action to conceal a material fact from another party. | Fraud by concealment |
| Silence is not misrepresentation unless what? | 1) there is a fiduciary relationship between contracting parties 2) nondisclosure would cause bodily injury or death 3) federal and state statutes require disclosure |
| This representation refers to the fact that the innocent party cannot generally rescind the contract because each party to a contract is assumed to know the law of the transaction. | misrepresentation of law |
| This, not being fraud, occurs when a person makes a statement of fact that he or she hoenstly and reasonably believes to be true even though it is not. One can rescind the contract but not sue. | innocent misrepresentation |
| This occurs when one party threatens to do some wrongful act unless the other party enters into a contract | Duress |
| This occurs when one person (the dominant party takes advantage of another person's mental, emotional, or physical weakness and unduly persouades that person (the servient party) to enter into a contract. | undue influence |
Created by:
rogue2281