(Q1) Defective Agreements and Statues of Frauds pg 14-15

Question 1

Defective Agreements

Answer 1

Mistakes by the Parties

Question 2

Unililateral Mistake

Answer 2

• only one party makes a mistake
• has no effect on validity

Question 3

Bilateral/Mutual

Answer 3

• Majority states say void
• Some states say voidable
• In any event, it is unenforceable
• Must be mistake as to material part of contract such as the subject matter

Question 4

Fraud

Answer 4

• misrepresentation of a material fact made knowingly, or with the reckless disregard as to its truth or falsity.
• Made to influence or induce someone to act on your statement/contract to their detriment

Question 5

Duress

Answer 5

physical or economic threat to a person

Question 6

Undue Influence

Answer 6

removing a person’s free will through a fiduciary relationship

Question 7

What three actions make a contract voidable?

Answer 7

• Fraud
  -Duress
• Undue Influence

Question 8

What are the two types of Defective Agreements?

Answer 8

• Unilateral
• Bilateral/Mutual

Question 9

Statute of Frauds

Answer 9

• Contracts required to be in writing (can’t sue if it’s not in writing)
• applies to executory contracts only

Question 10

What type of contracts have to be in writing?

Answer 10

• sale of land (real property) - impossible to perform within one year
  
  • promise to pay the debts of another person
• agreements of executor or administrator to pay debts of an estate out of their own funds
  
  • any promise in consideration of marriage
• sale of personal property in the amount of $500 or more, under UCC

Question 11

Requirements for a Statutes of Frauds contract

Answer 11

• can be a note or memorandum
• all material terms must be stated
• in existence by time of suit
• signed by party being sued
  Parol Evidence Rule applies

Question 12

Parol Evidence Rule

Answer 12

can not introduce oral testimony to change terms of a written contract