REG 2 - R6 Contracts Flashcards
Defense of Fraud
The common law requires a showing of intent to deceive.
Fraud in the Inducement
The victim was deceived as to the reason for transaction.
Fraud in the Execution
A misrepresentation of the contents of a document by which one is induced to sign thinking it to be other than what it is.
Parol Evidence Rule
Does not allow evidence of prior oral or written agreements to contradict the terms of a complete contract. But allows subsequent agreements.
Minor Breach of Common Law
Those affected by minor breaches to their contract can only seek damages.
Statute of Frauds
Concerned about who has signed a contract
Scienter
The right to recover damages if there was an intentional false statement.
Rules of Assigning Contracts
- Allowed even if contract disallows assignment.
- Isn’t effective against the person who owes money (debtor, obligor) unless they receive notice.
a. If they don’t receive notice, it’s not considered
invalid, just not enforceable until notice is received.
Assignment of Rights
If a party wants to give contract rights to a third party
Delegation of duties
If a party wants to have a third party perform contractual duties.
Assignment of all rights under a contract
Both assignment of rights and a delegation of duties
Failure to have a license is void if
The license is required to have to protect the public instead of just making money
Statute of limitations for breach of contract
Begins once the contract has been breached.
Oral evidence is permissible when the contract is
- Incomplete
- Ambiguous (unclear)
- Invalid
- Subject to a condition precedent (event required before something else will occur), or modification is made when original contract is written
Rescission
Undoes a contract and restores parties to position they would have been in if the contract were never made.
