Quiz 5 Flashcards
Fraud
A false statement of a material fact made with the intent to deceive and upon which a party justifiably relies to his or her detriment
Misrepresentation
A false statement made without intent to deceive upon which a party justifiably relies to his or her detriment
Fraud in the execution
Relates to the nature of the actual contract/agreement
Fraud in the inducement
Fraud that relates to the parties motivation in entering the contract
Puffing
Opinion. Commonly known as sales talk
Intent to deceive
Knowingly. Knowledge that a statement is false and is offered to induce another party into an agreement
Justifiable reliance
The reliance upon the other party’s assertion is reasonable and to the detriment of the person so relying
Mutual mistake
All parties are mistaken as to a basic assumption of the contract
Unilateral mistake
Only one of the parties is mistaken as to a basic assumption of the contract
Undue influence
Where one party has a strong influence over the other party and abuses their position of dominance to the disadvantage of the other party
Fiduciary relationship
One party is obligated to act in the best interest of another party
Unconscionable contract
A contract that is so unfair or so unreasonable that it “shocks” the conscious
Adhesion contract
A contract where all the bargaining power is concentrated in one person. It is a take it or leave it contract, an example of an unconscionable contract
Bargaining power
The ability to negotiate; the ability to influence
Duress
A wrongful threat or act that overcomes the free will of the other party.
