Conduct invalidating consent, perf, breach & discharge

Question 1

Fraud- in execution

Answer 1

rare but consists of a misrepresentation of the actual nature of the contract → void

Question 2

Fraud- in inducement

Answer 2

intentional misrepresentation of material facts by one party when the other is relying on the misrepresented information → voidable

Question 3

Fraud Elements

Answer 3

False representation, of a fact, which is material, with knowledge of falsity and intention to deceive, justifiable reliance on the misrepresentation

Question 4

Negligent Misrepresentation:

Answer 4

without knowledge of the falsity of the representation but made without due care to be truthful

Question 5

Innocent Misrepresentation:

Answer 5

without knowledge of the falsity of the representation and made due care to be truthful

Question 6

Econ Loss Doctrine (ELD)

Answer 6

limitation on your right to claim misrepresentation in the formation of a contract involving the sale of goods or real estate if you could sue for breach of contract

Question 7

Duress

Answer 7

wrongful coercion that induces a person to enter into or modify a contract

Question 8

Undue influence

Answer 8

unfair persuasion exerted by one person upon another during the bargaining process where the relationship between the parties is one of trust and confidence

Question 9

(1) Third-party beneficiary contracts
(2) Assignment of contractual rights
(3) Delegation of contractual duties

Answer 9

Privity of contract: only those persons who are parties to a contract can have rights/obligations under it, but there are many exceptions:

Question 10

3rd party beneficiary contracts

Answer 10

party promises to render a certain performance not to the other party but to a third person (the beneficiary)

Question 11

Assignment of rights

Answer 11

voluntary transfer to a third party of the rights arising from the contract

Question 12

Delegation of duties

Answer 12

transfer of a contractual obligation to a third party

Question 13

Condition

Answer 13

event whose happening or nonhappening affects a duty of performance under a contract
• Can create, extinguish, or limit a contractual duty

Question 14

Implied in fact Conditions

Answer 14

they are not stated in express language, but they are inferred from the (a) terms of the contract, (b) the nature of the transaction, or (c) the conduct of the parties

Question 15

Implied in law Conditions

Answer 15

also called “constructive condition” is imposed by the law to accomplish a just and fair result

Question 16

legal impossibility

Answer 16

a contractual duty is discharged if there is a legal impossibility that causes inability to perform

Question 17

frustration of purpose

Answer 17

some unanticipated event has occurred as as a result the contract now has no value to one party

Question 18

commercial impracticability

Answer 18

some unanticipated event has occurred and performing the contract would be extraordinarily difficult and unfair to one party