Chapter 8 Flashcards
Assignment
The transfer or rights under contract to another party
Collateral contract
A separate contractual obligation that can stand alone, independent of the written contract
Common mistake
The same mistake made by all of the parties to the contract
Constructive trust
A trust inferred by the courts to benefit a third party to a contract
Duress
Force or pressure exerted upon a person to coerce that person to enter into a contract
Economic duress
Improper force or pressure that creates fear of economic hardship and which is exerted upon a person to coerce that person to enter into a contract
Fraudulent misrepresentation
Misleading words made knowingly without belief in their truth or recklessly cursing injury
Innocent misrepresentation
A false statement made honestly and without carelessness by a person who believed it to be true
Involuntary assignment
Assignment of rights that takes place involuntarily, as in the cases of death and bankruptcy
Material misrepresentation
A misrepresentation that induces someone to enter into a contract
Misrepresentation
A false statement of fact; an incorrect or untrue representation
Mistake
An error about some aspect of a contract that destroys consensus
Mutual mistake
When both parties to a contract are mistaken about an issue, but in a different way
Negligent misstatement
An incorrect or false statement of fact made without the required care that misleads the recipient thus causing injury
Negligent misrepresentation
An incorrect or false statement of fact made without the required care that misleads the recipient thus causing injury
Negotiable instruments
Substitutes for money that bestow unique benefits; vehicles for conveniently transferring funds or advancing credit
Non disclosure
A failure to reveal facts; if a duty to disclose exists, silence may constitute misrepresentation
Non est factum
“It’s not my act” a defence raised by a party to a contract asking the court to declare a contract void because the party was unaware of the nature of the contract
Non est factum
“It’s not my act” a defence raised by a party to a contract asking the court to declare a contract void because the party was unaware of the nature of the contract
Novation
The creation of a new contract through the sub of a third party for one of the original parties to a contract by the consent of all parol evidence rule a principle that courts will not permit outside evidence to contradict clear wording of a contract
Parol evidence rule
A principle that courts will not permit outside evidence to contradict clear wording of a contract
Privity of contract
A principle that contract terms apply only to the actual parties to the contract
Rectification
An equitable remedy by which a court can correct a mistake by ordering a change to a document to ensure it correctly expresses the common intention of the parties
Rescission
Amounts to the undoing of a contract, returning parties to the position they were in before the contract
Unconscionability
An equitable doctrine that allows courts to set aside a contract in which a party in a superior bargaining position took advantage of the other party, resulting in an unfair contract
Undue influence
Pressure from a dominant, trusted person that makes it impossible for a party to negotiate freely
Unilateral mistake
A mistake made by only one of the parties to a contract which the other party was aware of, or should have been aware of
Vicarious performance
Performance by another designated person of the obligations under contract, rather than by the actual contracting party
