Key Terms 11 & 12

Question 0

Collateral promise

Answer 0

A secondary promise to a primary transaction, such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be in writing to be enforceable

Question 1

Bilateral mistake

Answer 1

A mistake that occurs when both parties to a contract are mistaken
About the same material fact.

Question 2

Duress

Answer 2

Unlawful pressure brought to bear on a person, causing the person to perform an act that she or he would not otherwise perform.

Question 3

Fraudulent misrepresentation

Answer 3

Any misrepresentation, either by misstatement or by omission of a material fact., knowingly made with the intention of deceiving another and on which a reasonable person would and does rely to his or her detriment

Question 4

Integrated contract

Answer 4

A written contract that constitutes the final expression of the parties agreement. Evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is admissible

Question 5

Material Fact

Answer 5

A fact to which a reasonable person would attach importance in determining his or her course of action

Question 6

Parole Evidence Rule

Answer 6

A rule of contracts under which a court will not receive into evidence prior or contemporaneous oral statements and agreements that contradict the terms of the parties written contract

Question 7

Prenuptial Agreement

Answer 7

An agreement made before marriage that defines each partners ownership rights in the other partners property. Prenuptial agreements must be on writing for them to be enforceable

Question 8

Puffery

Answer 8

A salesperson often exaggerated claims concerning the quality of property offered for sale. Such claims involve opinions rather than facts and are not legally binding promises or warranties

Question 9

Scienter

Answer 9

Knowledge by a misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive

Question 10

Statute of frauds

Answer 10

A state statute that requires certain types of contracts to be in writing to be enforceable

Question 11

Undue influence

Answer 11

Persuasion that is less than actual force but more than advice and that induces a person to act according to the will or purposes of the dominating party

Question 12

Unilateral mistake

Answer 12

A mistake that occurs when one party to a contract is mistaken as to a material fact

Question 13

Voluntary consent

Answer 13

Knowledge of and genuine assent to, the terms of a contract