Conduct Invalidating Assent Flashcards
Duress
outside application of force sufficient to remove the freedom of will to contract
How can we decide if someone is a victim of duress?
Apply the subjective test
What’s the subjective test (question)?
Question: Did the threat actually induce assent upon the victim?
Elements of Duress (4)
1) Economic or social coercion
2) Explicit or implied threat
3) Leaves victim with no reasonable alternative
4) Threat induces victim to act against his/her will
Undue Influence
subtle, inner removal of the freedom of will to contract, unfair persuasion of a person by a party in a dominant position
What kind of relationship exists with undue influence?
A confidential relationship
Fraud in the Execution
party did not realize he/she was entering into a contractual relationship
Fraud in the Inducement
False statement of
Material Fact,
Intentionally made with reckless disregard for the truth,
Causing the other party to rely on his/her
Detriment or injury
Overt Fraud
Obvious defect
Covert Fraud
Concealment of defect
Misrepresentation
False statement of
Material Fact,
Causing the other party to rely on his/her
Detriment or injury
Mutual Mistake (3)
1) Both parties are mistaken
2) Untrue conclusions formed
3) Do not have same subject matter in mind
- -contract voidable by both parties–
Unilateral Mistake
1) One party is mistaken
2) General Rule - no relief
Are there exceptions to unilateral mistake?
Yes, when non-mistaken party knows or should know of the mistake made by other party
Is not having read the contract document ever a defense?
No
