Defenses Flashcards
i.music; list (6)
What are the defenses
- Incapacity
- Mutual assent, absence of (aka lack of offer + acceptance)
- Unconscionability
- SOF
- Illegality
- Consideration, absence of
voidable vs void
When a contract is voidable, a party to the contract is able to cancel or revoke the contract
A contract may be deemed void if the agreement is not enforceable as it was originally written
list (4)
What are the incapacity defenses
- Voluntary Intoxication
- Involuntary intoxication
- Mental incapacity
- Infancy/minority
incapacity defense
When is voluntary intoxication a defense
K is voidable (aka not enforceable) if other party had reason to know of intoxication
incapacity defense
When is voluntary intoxication not a defense
If there was “no reason to know” of intoxication then the K is NOT voidable aka the K is enforceable
incapacity defense
When is involuntary intoxication a defense
K voidable if person could not understand nature or significance of agreement when entered;
treated like mental incapacity
incapacity defense
When is mental incapacity a defense
Person so mentally deficient they cannot understand nature or significance of agreement when they entered it
incapacity defense, list (2)
Mental incapacity can void a K when:
- A previously incapacitated person can void/disaffirm a K when lucid or
- Void a K through use of a legal represenative
incapacity defense
When is infancy/minority a defense
when minor makes a K, minor can void the K
incapacity defense; list (2)
When can a minor affirm or void a K
- By conduct
- Before turning 18 or ~6mo after turning 18
AMA; list (3)
Types of “absence of mutual assent”
- Misunderstanding
- Misrepresentation
- Mistake
- unilateral mistake
- mutual mistake
AMA
When is misunderstanding a defense
If K includes a term with at least two possible meanings
AMA; list (3) - misunderstanding
If K language is ambiguous, K formed/not formed depending on awareness.
What are the levels of awareness and is K formed?
- Neither party aware - NO K unless both parties intended same meaning
- Both parties aware - NO K unless both parties intended same meaning
- One party aware - binding on what ignorant party reasonably believed to be the meaning of the ambiguous words
AMA; list (3)
Mutual mistake makes a K void if:
remember - void means unenforceable from the start
- mistake concerns a basic assumption on which K is made
- mistake has a material effect -AND-
- party seeking avoidance did not assume risk of mistake
AMA
Unilateral mistake is voidable** when
remember - voidable means one or both parties can avoid
Nonmistaken party knew or had reason to know about mistake, then mistaken party (party who did not know of the mistake and acted upon K) can void
iow: the unilateral mistake will not prevent formation of the contract _unless_ the nonmistaken party knew or had reason to know of the mistake
AMA
Unilateral mistake is NOT voidable when
(aka K is enforceable/can have a case for breach of K)
when nonmistaken party DID NOT have reason to know of the mistake
which means that the mistaken party will be liable on the K and cannot void it