R6 Contracts 3 (Th)

Question 0

Void

Answer 0

Unenforceable by either party

Question 1

Fraud in the Execution

Answer 1

Occurs when a party is deceived into signing something he does not know is a contract

Makes contract void

Question 2

Voidable

Answer 2

It may be avoided at the option of the party adversely affected

Question 3

Fraud in the Inducement

Answer 3

The defrauded party is aware she is making a contract, but terms are materially misrepresented

It makes contract voidable

Question 4

Innocent Misrepresentation

Answer 4

All the elements of fraud besides scienter, no punitive damages

Question 5

Duress

Answer 5

Arises when a party’s free wil to contract is overcome by an unlawful use of threat or harm

If the harm threatened is physical force, the contract is void

If the harm threatened is economic or social, then the contract is voidable

Question 6

Undue Influence

Answer 6

A party’s free wil to contract is overcome by the defendant’s abuse of a position of trust or confidence

Question 7

Mutual Mistake

Answer 7

If both parties to a contract are mistaken as to a material fact regarding the contract, the adversely affected party can avoid the contract.

Does not apply to value

Question 8

Unilateral Mistake

Answer 8

Not a defense to a contract unless the other party knew or should have known of the mistake

Question 9

Licensing Ilegality

Answer 9

Failure to have a license to protect the public makes a contract void

If the license is required merely to raise revenue,

the contract is enforceable

Promises not to compete are enforceable if reasonable
No stealing trade secrets
Duration and distance reasonable

Question 10

Minors May Generally Disaffirm Contracts

Answer 10

A minor may disaffirm a contract anytime while a minor or even within a reasonable time after becoming an adult

Minor will be bound by contracts made for necessities

Question 11

Ratification of Contract on Reaching Majority

Answer 11

Failing to disaffirm within a reasonable time after reaching majority

Expressly ratifying the entire contract orally or in writing

Retaining or accepting the benefits

Question 12

Mental Incompetentcy

Answer 12

A contract made by a party whose mental capacity is so deficient that he is not capable of understanding the nature and significance of the contract can be disaffirmed; voidable

A contract made by a party after he is adjudicated mentally incompetent is void

Question 13

Statute of Limitations of Contracts

Answer 13

Four to six years

Measured from date of breach

Question 14

Statute of Frauds - Contracts Requiring a Writing (MYLEGS)

Answer 14

contracts where the consideration is Marriage

contracts that cannot be performed within 1 Year

contracts involving an interest in Land

contracts by Exectors to pay estate debts out of personal funds

contracts for the sale of Goods $500 or more contracts to act as a Surety