G Chapter 13

Question 1

Mistake

Answer 1

The parties entered into a contract with different understandings of one or more material facts relating to the subject matter of the contract

Question 2

Unilateral Mistake

Answer 2

A mistake by one of the contracting parties will generally not excuse performance of the contract unless:

(1) the other party to the contract knew or should have known of the mistake; or
(2) the mistake is one of mathematics only

Question 3

Mutual Mistake of Fact

Answer 3

A mistake by both contracting parties as to some material fact generally empowers either party to rescind

Question 4

Fraudulent Misrepresentation

Answer 4

An innocent party induced by a misrepresentation of one or more material facts to enter into a contract may usually avoid the contract because she did not genuinely assent. In order to do so, she must establish that the other party

Question 5

4 points for fraudulent misrepresentation

Answer 5

(1) misstated or omitted a material fact
(2) on which a reasonable person would rely in deciding whether and on what terms to enter into the contract;
(3) knowing that it was conveying false information, or with reckless disregard for its truthfulness, and with the intent to deceive the innocent party; and
(4) on which the innocent party relied to her detriment.

Question 6

Negligent Misrepresentation

Answer 6

A material misrepresentation made without knowledge that it its false, reckless disregard for its truthfulness, or any intent to deceive.

Question 7

Name 4 types of misrepresentation

Answer 7

Predictions and Expressions of Opinion:
Misrepresentation by Conduct
Misrepresentation of Law
Misrepresentation by Silence

Question 8

Predictions and Expressions of Opinion

Answer 8

Will not excuse you unless the one making the prediction or expressing the opinion has superior knowledge and expects you to rely on this.

Question 9

Misrepresentation by Conduct

Answer 9

Such actions as hiding things etc will convey fraud.

Question 10

Misrepresentation of Law

Answer 10

Will not excuse you unless the one making the claim knows more than the average person about law and is considered a legal expert.

Question 11

Misrepresentation by Silence

Answer 11

No duty to speak unless the other party asks but a duty is held where one party knows something which he knows the other party should know or where a latent defect exists.

Question 12

Undue Influence

Answer 12

Arises from relationships in which one party can influence another party to the point of overcoming the influenced party’s free will.

The essential feature of undue influence is that the party being influenced does not genuinely assent of her own free will.

Question 13

Duress

Answer 13

Compelling an innocent party to enter into a contract by threatening to harm him or another person, or his livelihood, if he does not agree to the contract.

Duress is grounds for rescission; although, a party forced to enter into a contract under duress may choose to perform the contract.

Question 14

Statute of Frauds

Answer 14

A statute that requires certain types of contracts to be evidenced by a writing in order to be enforceable. The following types of contracts generally must be evidenced by a writing to be enforceable

Question 15

Name 5 statues of fraud

Answer 15

1) contracts involving an interest in real property (e.g., a home mortgage);
(2) contracts that cannot, by their terms, be performed within one year after the date the contract was formed (e.g., a five-year employment contract);
(3) collateral promises, such as promises to answer for or guarantee the debt or duty of another person and promises by an executor or administrator to answer personally for the debts of an estate; Surety Agreement
4) promises made in consideration of marriage (i.e., prenuptial agreements); and
(5) contracts for the sale of goods for $500 or more. UCCSF

Question 16

What are the 5 exceptions to the Statue of fraud

Answer 16

Exceptions to the UCCSF
SWAMP
S…pecially Manufactured Goods ( SMG)
W…aiver…. you lose the defense if you do not use it
A…dmission….you admit so cannot deny now
M…erchant Memo Rule
P…artial Performance…..you cannot deny what is done

Question 17

SMG…..Specially Manufactured Good

Answer 17

Custom made goods, substantial steps taken ( $ ), and failure to enforce would result in great harm and injustice involving an oral contract for goods over $ 500 ( UCCSF would normally apply)

Question 18

MMR…Merchant Memo Rule

Answer 18

Two merchants involved, and one sends a confirming memo which the other fails to object to within 10 business days so the memo becomes the new contract and terms.

Question 19

FORM OF THE WRITING

Answer 19

A written contract, signed by both parties, satisfies the requirements of the statute of frauds.

A writing signed by the party against whom enforcement is sought

An agreement may be signed anywhere on the agreement; moreover, initials, letterhead, a rubber stamp, or even a fax banner may satisfy the signature requirement

A confirmation, invoice, sales slip, check, or fax, or any combination thereof

Question 20

ESSENTIAL TERMS

Answer 20

1)the names of the parties,
(2)the subject matter of the contract,
(3)the amount of property to be sold or leased or services to be rendered, and
(4)the consideration given or promised to the party against whom enforcement is sought.
Whether price is an “essential” term depends on the type of contract in question

Question 21

Parol Evidence Rule

Answer 21

A substantive rule of contract law under which a court will not admit evidence of the parties’ prior negotiations, prior oral or written agreements, or contemporaneous oral agreements if that evidence contradicts or varies the terms of a fully integrated, unambiguous written contract.

Question 22

Integration

Answer 22

The extent to which a written contract represents the final and exclusive agreement of the parties.

A particular term included in a written contract is integrated if the writing represents the parties’ final agreement on that term.

A written contract is fully integrated if it constitutes the parties’ final agreement on all terms relating to the transaction.

Question 23

Ambiguity

Answer 23

A written contract is unambiguous if its terms are not susceptible to more than one reasonable, legal interpretation.

Question 24

extrinsic evidence

Answer 24

Courts have recognized numerous exceptions to the rule excluding extrinsic evidence proffered to contradict or vary the terms of a fully integrated, unambiguous written contract, including:

Question 25

Exceptions to the Parol Evidence Rule

Answer 25

evidence that the parties orally modified their written agreement

evidence of mistake, fraud, or misrepresentation

evidence that may resolve an ambiguity

evidence of prior dealing between the parties

evidence of an oral condition precedent

evidence of an obvious or gross clerical error