Defenses to enforceability Flashcards
Note the modern rule for capacity of minors to enter contracts
A minor may enter into a contract, but the contract is voidable at the option of the minor.
Under the requirement of materiality, a mistaken fact must
Significantly impact the value of the transaction to one or both parties
A unilateral mistake occurs when
Only one party to the contract is operating under a faulty assumptions about material facts as they exist at the time of contracting
For a unilateral mistake, a party mistaken about present material facts is not excused from the contract except and what cases?
The party is not excused except when:
A. The other party knew or had reason to know of the parties mistake; or
B. There was a serious clerical error.
Mutual mistake occurs when:
Both parties have labored under a common faulty assumption regarding the present facts.
When is a contract voidable due to mutual mistake?
Under mutual mistake, the contract is voidable by the disadvantage party win:
A. The mistaken assumption relates to material facts;
B. The mistake was made by both parties; and
C. The disadvantage party did not bear the risk of mistake under the parties agreement.
When is fraudulent misrepresentation established?
Fraudulent misrepresentation is established when:
A. The defendant made an assertion that was inconsistent with existing facts;
B. The defendant acted with Scienter and with the intent to mislead;
C. The misrepresentation was material to the contract; and
D. There was reasonable reliance on the representation.
For a contract to be enforceable, the statute of frauds requires the contract be:
Evidence by a writing that is signed by the party against whom the enforcement is sought.
What are the six categories of agreements governed by the statute of fraud’s?
One. A contract of consideration of MARRIAGE
Two. Number two. A contract that will not be completed within one YEAR of formation of the contract; three. Contract for the sale of an interest in LAND
Four. A contract of an EXECUTOR or administrator to answer for a duty of the decedent;
Five. A contract of GUARANTEE or suretyship; and
6. A contract for the SALE of goods at a price of $500 or more.
Note: the mnemonic is MY LEGS
To satisfy the UC see statute of fraud’s, the writing must include what specific term?
Quantity.
When will the merchants confirmation satisfy the UCC statute of fraud’s?
Went to merchants into an oral agreement and one of them since the other a written confirmation of the agreement. In such a circumstance, the statute is satisfied against the recipient merchant if the latter fails to object to the confirmation within 10 days of receipt of valid merchants confirmation requires a writing that is:
A. Sufficient against the center
B. In confirmation of the contract;
C. Send within a reasonable time at the making of the oral agreement; and
D. Made up of content that the receiving merchant has reason to know.
Under the part performance exception despite the absence of the signed writing, and otherwise valid contract is up for support with respect to goods for which:
Payment has been made and excepted or which have been received and accepted
Under the UCC, The statute of frauds satisfied for specially manufactured goods in with cases
A. Goods are to be specially manufactured for the buyer;
B. Goods are not suitable for sale to others in the ordinary course of business;
C. Seller has substantially begun to manufacture, or make commitments to procure, the goods;
D. The actions undertaken to begin to manufacture or procure a cute occurred under circumstances that reasonably indicate that the goods are for the buyer; and
E. The actions undertaken to begin to manufacture or procure occurred before the seller received notice of the buyers revocation.
For the statute of fraud’s, the writing need not be a single document, and they party may satisfy the statute by:
Tacking together several documents that’s together satisfy all the necessary requirements for the statute of frauds.
For oral land sale contract, part performance may satisfy the statute of frauds. How was per performance defined?
By showing any two of the following:
▪️Taking possession of the land;
▪️Making substantial improvements to the land; and
▪️Paying part or all of the purchase price.
