Chapter 15

Question 1

Types of Mistakes of Fact, and effects

Answer 1

Unilateral and Bilateral

contract voidable, must be material fact

Question 2

Unilateral, exceptions (2) v Bilateral mistakes of fact

Answer 2

1. made by 1 party, normally enforceable unless 1. other party (should have) known that a mistake of fact - made 2. error was due to substantial math mistake and was made inadvertently and without gross negligence
2. mutual understanding concerning a basic assumption on which the contract - made -> both can rescind

Question 3

(contract) Types of mistakes (2)

Answer 3

Mistakes of Value, mistake of material fact

Question 4

fraudulent misrepresentation effect on contract + 4 parts

Answer 4

rescinded by innocent party and restored to original position nd seek damages
1. misrep has occured, intent to decieve, justifiable relaince on the misrepresentation, injury to the innocent party

Question 5

merger clause

Answer 5

contract clause stating that the contract embodies the entire agreement between the parties

Question 6

types of misrepresentation action (3)

Answer 6

under fraudlent misrep
by conduct, of law - usually X entitle party to relief from contract unless misrep * - in a profession known to rq greater knowledge o law than avg *
, by silence - usually dont set aside, but duty to speak about serious potential problem buyer X reasonably be expected to discover or latent defects

Question 7

scienter

Answer 7

guilty knowledge

Question 8

(intent) types of misrepresentation

Answer 8

innocent - person makes statement they believe is true -> not fraud , so other * can rescine but no damages v negligent - no reasonable care even if not purposeful

Question 9

(fraudulent misrep) injury requirement?

Answer 9

rq for damages, not rq to rescind on fraud

Question 10

(fraudulent misrep) damages owed eq

Answer 10

property value had it been delivered as rep - actual price paid

Question 11

undue influence

Answer 11

relationship in which 1 party can greatly influence another, overcoming that party’s free will -> voidable

Question 12

presumption of undue influence

Answer 12

when dom party in fiduciary relationship benefits from that relationship, must exercise utmost good faith in dealing with the *

Question 13

duress

threat to exercise legal right?

Answer 13

(consent)
use of threats to force a party to enter into a contract -> recission
the threatened act must be wrongful or illegal, somethig they had no right to do and render threatened person incapable of exercising free will
voidable regardless of guilt

Question 14

economic duress

Answer 14

• exacting price also creates the need, X sufficient to constitute duress

Question 15

adhesion contracts + ex

Answer 15

written exclusively by 1 party and presented to other party as take it or leave it -> no op to negotiate
standard form contracts

Question 16

standard form contracts

Answer 16

often have fine print provisions that shift a risk usually borne by 1 party to another
to avoid enforcement -> show unconscionable