Business Law- Chapter 13 Flashcards
Genuineness of Assent
The requirement that a party’s assent to a contract be genuine
Rescission
An action to undo a contract.
Unilateral Mistake
A mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract.
Mutual Mistake of Fact
A mistake made by both parties concerning a material fact that is important to the subject matter of a contract.
Mutual Mistake of Value
A mistake that occurs if both parties know the object of the contract but are mistaken as to its value.
Fraudulent Misrepresentation
An even that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation.
Scienter
Knowledge that a reprsentation is false or that it was made without sufficient knowledge of the truth.
Fraud in the Inception
Fraud that occurs if a person is deceived as to the nature of his or her act and does not know what she is signing.
Fraud in the Inducement
Fraud that occurs when the party knows what she is signing but has been fraudulently induced to enter into the contract.
Fraud by Concealment
Fraud that occurs when one party takes specific action to conceal a material fact from another party.
Innocent Misrepresentation
Fruad that occurs when a person makes a statement of fact that she honestly and resonably believes to be true even through it is not.
Duress
A situation in which one party threatens to do a wrongful act unless the other party enters into a contract.
Undue Influence
A situation in which one person takes advantage of another person’s mental, emotional, or physical weakness and unduly persuades that person to enter into a contract; the persuasion by the wrongdoer must overcome the free will of the innocent party.
