Main Prohibitions to the Reality of Consent

Question 1

duress

Answer 1

involves threat of force or psychological threat

physical threat voids contract
psychological threat makes contract voidable

test for duress is subjective, protect the weak
free will is prohibited, so its not real consent

Question 2

undue influence

Answer 2

advantage taken by a dominant party against a dependent party

personal relationship, one party is dominant and one is dependent

trust is key

VOIDABLE

Question 3

types of fraud

Answer 3

fraud in the inducement

fraud in the execution

Question 4

fraud in the inducement

Answer 4

six elements:

1. false representation
2. of a material fact
3. made knowingly or with culpable ignorance (should have known)
4. with intent to deceive and be acted upon
5. it is justifiably relied upon by the plaintiff thereby inducing the plaintiff to contract
6. results in legal injury to the plaintiff

Question 5

fraud in the execution

Answer 5

in the essence of the contract

renders contract void; trickery

Question 6

mistake

Answer 6

1. as to the nature of the subject matter
2. as to the existence of identity of subject matter (unknown to both parties, the subject matter is destroyed in a fire, or cow thought to be barren to be with calf)

Question 7

exceptions to mistakes

Answer 7

mistake merely as to value cannot be used to avoid a contract
unilateral mistake usually cannot be used to avoid a contract
palpable (obvious) unilateral mistake will avoid a contract to prevent unjust enrichment (obvious, gross mistake in bid price, or typographical error)

Question 8

main prohibitions to the reality of consent

Answer 8

duress
undue influence
fraud
mistake