Chapter 8 Flashcards
What does Voidable mean?
Party can choose to keep in force or bring it to an end
What is a Void Contract?
Involving a defect so substantial that it is of no force or effect
What is the Legal Capacity?
Ability to make binding contracts?
What is the Age of Majority?
Age when a person becomes an adult for legal purposes, minors aren’t obligated by contracts that they make, voidable by the minor alone, they can still sue for breach
Can you enforce contracts with minors?
Yes if the item is a necessity or it they already have an adequate supply of it
What does it mean for Mental Incapacity?
Can avoid contract at their option if they are mentally incapable and the other party was aware
What about Illegal contracts?
They are VOID, e.g. contract to kill someone, unlicensed realtor
What is a Non-Solicitation Clause?
Clause forbidding the employee from contacting the business’ customers
What is a Non-Competition Clause?
Forbids competition outright for a certain period of time and therefore more instrusive
What is Economic Duress?
Threat of economic harm that coerces the will of other party and results in a contract
What is Duress?
Threats that coerce the will of the other party and results in a contract
What is an Undue Influence?
Unfair manipulation that compromises one’s free will, takes advantage of their position, its Voidable for the party whose free will was lost
What is Actual Pressure?
Party has exerted unfair influence
What is Presumed Pressure?
e.g. between doctor/client because they depend on them
What is Unconscionability?
Unfair contract formed when one party takes advantage of the weakness of another, proof of inequality and proof of substantial unfairness
What is a Rescission?
Parties being returned to their pre-contractual position, sometimes not possible there will receive monetary compensation
What is a Misrepresentation of Relevant Facts?
A false statement that caused someone to enter a contract. Rescission in contract will occur
What is Fraudulent Misrepresentation?
Deliberate intent to mislead/make statement recklessly without knowing/believing it’s true. Damages in tort
What is Negligent Misrepresentation?
Makes statement carelessly or negligently. Damages in tort
What is Innocent Misrepresentation?
Has misrepresented a fact, merely innocent
What is a Statue of Frauds?
Contract must be in writing to prevent fraud and perjury, contract is unenforceable if its not
What is a Contract of Guarantee?
Promise to pay the debt of someone else, should that person default on obligation, writing is required
What are Contracts not to be Performed within a Year?
Hard to prove promises in the distant pass, so writing is required
What are Contracts Dealing with Land?
Must be in writing except when they enforce an oral agreement for purchase of land, could be accepted in place of a written agreement
