Chapt 13 Word Scramble

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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