BUL chapter 17

Question 1

voidable

Answer 1

a contract without legal assent

Question 2

rescinded

Answer 2

or canceled, permitting the person who cancelled the contract to require the return of everything she gave the other party

Question 3

mistake of fact ***

Answer 3

an erroneous belief about the facts of the contract at the time the contract is concluded

Question 4

unilateral ***

Answer 4

the result of error by one party about the material fact

Question 5

material fact

Answer 5

a fact that is important in the context of the particular contract

Question 6

mutual ***

Answer 6

mistakes shared by both parties to the agreement

Question 7

unilateral mistake conditions ***

Answer 7

1) one party made a mistake about a material fact, and the other party knew or had reason to know about the mistake 2) the mistake was caused by a clerical error that was accidental and did not result from gross negligence 3) the mistake was so serious that the contract is unconscionable, that is , so unreasonable that it is outrageous

Question 8

mutual mistake conditions ***

Answer 8

1)a basic assumption about the subject matter of the contract 2)a material effect on the agreement 3) an adverse effect on a party who did not agree to bear the rick of mistake at the time of the agreement

Question 9

misrepresentation

Answer 9

an untruthful assertion by one of the parties about the material fact; it prevents the parties from having the mental agreement necessary for a legal contract

Question 10

innocent misrepresentation

Answer 10

results from a false statement about a fact material to an agreement that the person making it believed to be true

Question 11

scienter

Answer 11

from scio meaning to know

Question 12

negligent misrepresentation ***

Answer 12

if one party could have known the truth by using reasonable care to discover or reveal it

Question 13

fraudulent misrepresentation ***

Answer 13

a consciously false representation of a material fact intended to mislead the other party

Question 14

intentional misrepresentation ***

Answer 14

also known as fradulent misrepresentation

Question 15

fraudulent misrepresentation conditions ***

Answer 15

1)a false statement about a past or existing fact that is material to the contract 2) Intent to deceive, which can be inferred from the particular circumstances 3)Justifiable reliance on the false statement by the innocent party to the agreement

Question 16

concealment

Answer 16

the active hiding of the truth about a material fact

Question 17

nondisclosure

Answer 17

a failure to provided pertinent information about the projected contract

Question 18

undue influence ***

Answer 18

special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade the other and interfere with that person’s ability to make his or her own decision

Question 19

duress ***

Answer 19

occurs when one party is forced into the agreement by the wrongful act of another

Question 20

duress conditions ***

Answer 20

physical harm or extortion, threat to file a criminal lawsuit, threat to the other party’s economic interests

Question 21

unconscionably ***

Answer 21

when one party has so much more bargaining power than the other that he or she dictates the terms of the agreement

Question 22

adhesion contract

Answer 22

the disproportional amount of power possessed by one party to the contract has made a mockery of the idea of free will, a necessity for legal consent

Question 23

false assertion conditions ***

Answer 23

1) a relationship of trusts exists between the parties to the contract 2)there is failure to correct assertions of fact that are no longer true 3)A statute requires the disclosure 4)the nondisclosure involves a dangerous defect

Question 24

justifiable reliance on the false statement by the innocent party to the agreement

Answer 24

justifiable reliance is generally present unless the injured party knew, or should have known by the extravagance of the claim, that the false statement was indeed false.

Question 25

legal assent***

Answer 25

a promise the courts will require the parties to obey