Avoidance

Question 1

Gallon v. Lloyd-Thomas

Answer 1

A contract that may have been voidable for reasons of duress may no longer be voidable if it was ratified by completion of performance

Duress

Question 2

Austin Instrument v. Loral

Answer 2

If there is no reasonable alternative to giving into economic duress, performance may not be ratification. Threat of lawful action or breach is not duress.

Duress

Question 3

Francois v. Francois

Answer 3

A showing of subversion of the other party’s free will without genuine agreement by exploiting a confidential relationship may make a contract unenforceable

Undue Influence

Question 4

Cousineau v. Walker

Answer 4

(1) Did the buyer rely on statements made about the property?
(2) Were the false statements material to the transaction?
(3) Was the buyer’s reliance justified?

Misrepresentation

Question 5

Vokes v. Arthur Murray, Inc.

Answer 5

Where there is a fiduciary relationship between parties–the parties do not deal at “arm’s length”– or where the party does not have an equal opportunity to become appraised of the truth, a contract may be rescinded based on fraud or misrepresentation

Misrepresentation

Question 6

Smith v. Zimbalist

Answer 6

The description in a bill of sale amounts to a warranty that the subject matter of the sale conforms to the description on the bill of sale

Warranty

Question 7

Sherwood v. Walkers

Answer 7

If there is a misapprehension as to the substance of the thing being bargained for and the thing that is actually delivered is substanitally different from the thing being bargained for, then there is no contract

Mistake

Question 8

Donovan v. RRL

Answer 8

A party may resicnd a contract if consent was given by mistake -
1. Mistake involves basic assumption upon which the contract was based
2. Has a material affect on the exchange that is adverse to the mistaken party
3. Rescission for unilateral mistake of fact where enforcement would be unconscionable is authorized

Mistake

Question 9

Hoffman v. Chapman

Answer 9

A written contract may be reformed to the real intentions of the parties when the parol evidence is so clear as to give no reasonable doubt that a mutual mistake was made

Reformation

Question 10

Williams v. Walker-Thomas Furniture

Answer 10

Unconscionability is present when there is an absence of meaningful choice on the part of one of the parties and the terms are unreasonably favorable to the other party

Unconscionability and Duty to Read

Question 11

In re RealNetworks v. Privacy Litigation

Answer 11

There is a duty to read -
1. Procedural unconscionability involves impropriety during the process of formation
2. Substantive unconscionability pertains to cases where a clause or term is allegedly one-sided or overly harsh

Duty to Read