Defenses

Question 1

Defenses to Contract Formation

7

Answer 1

Statute of Frauds
Duress
Misrep-Conceal
Capacity
Unconscionability
Illegality
Immorality

Question 2

Statute of Frauds

5 types

Answer 2

Marriage
Longer than a year to complete
Land
Executor
Greater than 500 (goods, UCC)
Suretyship (contract to answer for debt of another)

Question 3

Unconscionability

Answer 3

R2d 208
UCC 2-302

Bargaining process so one sided-it is unconscionable

Procedurally (fine print, unfair surprise)
Substantive (actual terms unfair and one sided)

Question 4

Parole Evidence 3 Prong Test

Answer 4

Related?
Contradicts?
Integrated?

3 no’s allows outside evidence (Parol Evidence Rule doesn’t apply)

3 yes’s (Parol Evidence Rule Applies =no outside evidence)

Question 5

Parol Evidence Case Icehouse

Answer 5

Mitchell v. Lath

“Must not be one that parties would not ordinarily expect it to be in the contract”.

In this case, if they wanted icehouse removed should have put it in contract

Question 6

Duress

Answer 6

Hard bargain enforceable

Improper threat - leaves victim NO other reasonable alternative:

Crime or tort
Civil Process
Harm recipient and not benefit party making the threat
Economic
Breach of duty of fair dealing & good faith
Undue influence

REMEMBER: No other reasonable alternative

Question 7

Misrepresentation/Concealment Case

Answer 7

Dannan (Merger Clause about not to rely on representations) so no misrep). Dissent sited Hill v. Jones, disagreed.

Hill v. Jones (No on integration clause to free self from fraud)
Termite house

Question 8

Capacity

Answer 8

Under guardianship
Infant
Mentally ill
Intoxicated

Question 9

Misrepresentation rule statement

Answer 9

Misrepresentation requires a material or fraudulent statement, inducement, and justifiable reliance.

Fraudulent - intention to mislead