Chap. 13 Flashcards
What is a rescission?
An action to undo a contract.
What is genuineness of assent?
The requirement that a party’s assent to a contract be genuine.
What is an unilateral mistake?
A mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract.
What is a mutual mistake of a material fact?
A mistake made by both parties concerning a material fact that is important to the subject matter of a contract.
What is a mutual mistake of value?
A mistake that occurs if both parties know the object of the contract but are mistaken as to its value.
What is fraudulent misrepresentation(fraud)?
An event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation.
What is a scienter (“guilty mind”)?
Knowledge that a representation is false or that it was made without sufficient knowledge of the truth.
What is fraud in the inception (fraud in the factum)?
Fraud that 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.
What is fraud in the inducement?
Fraud that occurs when the party knows what he or she is signing but has been fraudulently induced to enter into the contract.
What is fraud by concealment?
Fraud that occurs when on party takes specific action to conceal a material fact from another party.
What is innocent misrepresentation?
Fraud that occurs when a person makes a statement of fact that he or she honestly and reasonably believes to be true even though it is not.
What is a duress?
A situation in which one party threatens to do a wrongful act unless the other party enters into a contract.
What is 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.
