Chapter 11: Conduct Invalidating Assent Flashcards
Duress
Wrong school or unlawful act or threat that overcomes the free will have a party.
Physical duress
Coercion involving physical force renders the agreement avoid.
Improper threats
Improper threats or ask, including economic and social coercion, render the contract avoidable.
Undue influence
The unfair persuasion of a person by a party in a dominant position based on a relationship of trust and confidence.
Fraud in the execution
I miss representation that to see if the other party as she’s a very nature of the contract; renders agreement void.
Fraud in the inducement
Misrepresentation regarding the subject matter of a contract that induces the other party to enter into the contract; renders the contract avoidable.
Misrepresentation
Some positive statement or conduct that is not in accord with the facts.
Concealment
Action taken to keep another from learning of a fact.
Fiduciary
Person who owns a duty of trust, loyalty, and confidence to another.
Fact
And event that took place or a thing that exists.
Opinion
Believe in the existence of a fact or a judgment as to value.
Puffing
Sales talk that is considered general bragging or overstatement.
Material
Of substantial importance; likely to induce a reasonable person to enter into the contract.
Scienter
Guilty knowledge
Justifiable reliance
Reliance reasonably influenced by the misrepresentation.
Negligent misrepresentation
Made without knowledge of its falsity and without due care.
Innocent misrepresentation
Misrepresentation made without knowledge of its falsity but with due care.
Mistake
And understanding that is not in accord with existing fact.
Mutual mistake
Both parties have a common but erroneous belief forming the basis of a contract.
Unilateral mistake
Erroneous belief on the part of only one of the parties to a contract.
Assumption of risk of mistake
A party may assume the risk of a mistake.
Effect of fault upon mistake
Not a bar to avoidance unless the fault amounts to a failure to act in good faith.
