Chapter 13 Flashcards
A contract signed under duress or undue influence is simply void
False. The contract is voidable at the option of the person pressured
A _________ may be negligent (innocent) or fraudulent
Misrepresentation
Mutual mistakes may be remedied by ________
Reformation
Duress and undue influence have the same meaning
False. Unlike duress, pressure is exerted through persuasion rather than coercion
Elements of innocent misrepresentation:
False assertion &
Reasonable reliance on the assertion by complainant
A unilateral mistake will not render a contract void unless:
An unequal bargaining position existed
The ability to incur legal obligations and acquire legal rights
Capacity
Occurs when a person who reaches majority indicates that he/she intends to be bound by a contract made while still a minor
Ratification
The right to avoid a contract due to incapacity
Disaffirmance
A minors right to disaffirm a contract ends within a “______” time after the minor achieved the age of majority
Reasonable
Intoxicated persons may disaffirm a contract only when it is so extreme that the person is unable to understand the nature of the bargaining process
True
Persons with mental incapacity may _______ a contract, but once the person regains capacity, he/she may ratify the contract
Disaffirm
The ______ _____ states that when a minor disaffirms a contract: recovery of the full price is subject to deduction for the minors use of the merchandise
Benefit rule
Ted just turned 17 years old. Emancipated from his parents, Ted bought a car from Car Co. two weeks after he bought the car, Ted damaged it. Ted returned the vehicle to CarCo asking for a full refund. CarCo must:
Pay ted only the present value of the car
