Quiz 5 Vocab - Test 1 Flashcards
Misrepresentation
A false statement made without intent to deceive upon which a party justifiably relies to his or her detriment.
fraud
A false statement of a material fact made with the intent to deceive and upon which a party justifiable 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 party’s 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.
basic assumption of fact
A fact that is an essential term 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.
unsconscionable contract
A contract that is so unfair or so unreasonable that it “shocks” the conscience.
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.
