CH 12 - Defenses to Contract Enforceability

Question 0

BILATERAL MISTAKE

Answer 0

Both parties mistaken. Contract can be rescinded by either party

Question 1

MISTAKE

Answer 1

Only mistake of fact may allow a contract to be avoided, not a mistake of value or quality.

Question 2

UNILATERAL MISTAKE

Answer 2

One party mistaken as to a material fact.

Question 3

FRAUD

Answer 3

Lie!!!! of a material fact causing reasonable reliance and harm

Question 4

SCIENTER

Answer 4

Knowledge by a misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.

Question 5

MATERIAL FACT

Answer 5

A fact that is relevant for the case, and have direct effect

Question 6

UNDUE INFLUENCE (Brainwashing)

Answer 6

Relationships where one party can greatly influence another party overcoming its free will. Lacks of voluntary consent and it is voidable.

Question 7

DURESS

Answer 7

Legal force

Question 8

STATUTE OF FRAUDS

Answer 8

Requires certain type of contracts to be in writing to be enforceable

Question 9

UCCSF

Answer 9

Any contract involving goods valued at $500 or more MUST BE in a signed writing form to be enforceable. Exceptions oral contracts ($500 or more) goods can still enforce.

Question 10

SWAMP

Answer 10

S = Specially manufactured goods (Custom made) Serious harm if cancelled
W = Waiver (Use it or lose it)
A = Admission (Big Mouth)
M = Merchant Memo Rule
P = Past Performance (Cannot deny what you've done)

Question 11

SURETY / COLLATERAL PROMISES

Answer 11

Secondary promise to a primary transaction. Must be written to be enforceable.

Question 12

MAIN PURPOSE RULE

Answer 12

If the main purpose of the surety is self-benefit, allow other evidence

Question 13

PAROL EVIDENCE RULE

Answer 13

A court will not receive as evidence prior or contemporaneous oral statements and agreements that contradict the terms of the written contract.

Question 14

INTEGRATED CONTRACT

Answer 14

Written contract that constitutes the final expression of the parties agreement.