Chapter 15 Flashcards
Lack of voluntary consent is a _______ to enforcement.
Defense
What is a mistake of fact?
Parties have different understandings of material facts.
What is a unilateral mistake?
An enforceable contract, one person misunderstands a thing.
What is a bilateral mistake?
Both parties mistaken about the material facts regarding the bargain. Voidable by either party and must be same fact.
What is a mistake of value?
Variable, subjective mistake. Not voidable. Each party assumes risk in contract.
What is fraudulent misrepresentation?
Misrepresentation of material fact, intent to deceive, justifiable reliance on misrepresentation, harm.
What is inducement in fraudulent misrepresentation?
Inducement is convince to contract.
What is execution in fraudulent misrepresentation?
Execution is performance of contract. Either rescind and be restored or enforce and seek damages for harm.
What is misrepresentation of material fact by conduct?
Specific action to conceal a fact that is material to the contract.
Are statement of opinions and predictions fraud?
Not subject to claims of fraud. Exception is a naïve purchaser and expert, may be entitled to a recission or reformation.
What is misrepresentation of law?
Not fraud unless special knowledge, you are assumed to know law or hire counsel.
What is misrepresentation by silence?
No duty to disclose at common law. Exceptions are defect or risk of injury, fiduciary relationship.
What is intent to decieve and scienter?
Knowledge of falsely represented facts, scienter (guilty knowledge) is intent to deceive.
What is negligent misrepresentation?
Not exercise reasonable care uncovering or disclosing facts or not use skill and competence required by profession.
What is innocent misrepresentation?
Statements believes to be true but misrepresents facts. Innocent party can rescind contract, but usually cannot seek damages.
