Chapter 6

Question 1

A contract regarded by the courts as never having existed, with neither party able to enforce anything under it

Answer 1

void contract

Question 2

a contract whose defect allows one of the parties to end the contract as if it had never existed

Answer 2

voidable contract

Question 3

the purpose of the contract must be legal, and even if legal, must be one that a court of law believes should be enforced

Answer 3

legality

Question 4

the purpose of the contract must not conflict with the interests of society

Answer 4

public policy

Question 5

the parties must be capable of understanding what they are getting into

Answer 5

capacity

Question 6

wrongful beliefs about the terms of a contract that cause a person to enter into it

Answer 6

mistakes

Question 7

a false statement made by one party on an important term in a contract that they know was a reason why the other party agreed to the contract

Answer 7

fraudulent misrepresentation

Question 8

a false statement, made by one party about an important term in a contract, which they in good faith believed to be true, that was a reason why the other party agreed to the contract

Answer 8

innocent misrepresentation

Question 9

a duty to disclose, arising out of a special relationship of trust between the parties

Answer 9

utmost good faith

Question 10

influencing a party to entering a contract through the abuse of a position of dominance

Answer 10

undue influence

Question 11

coercing a party into entering a contract through the threat or use of harm to their person, their reputation or their finances

Answer 11

duress