Restatement

Question 1

Material Breach (241)

Answer 1

• extent injured party deprived of benefit
• extent injured party can be adequately compensated
• extent breacher will suffer forfeiture
• likelihood that breacher can/will cure failure
• extent breacher comports with standards of good faith and fair dealing

Question 2

Misrepresentation (159)

Answer 2

a misrepresentation is an assertion that is not in accord with the facts

Question 3

When a misrepresentation is fraudulent or material (162)

Answer 3

Fraudulent: maker intends his assertion to induce a party to manifest his assent AND the maker:

• knows/believes that the assertion is not in accord with the facts OR
• does not have the confidence that he states or implies in the truth of the assertion OR
• knows he does not have the basis that he states/implies for the assertion

Material: it would be likely to induce a reasonable person to manifest his assent OR if the maker knows that it would be likely to induce the recipient to do so.

Question 4

When a misrepresentation makes a contract voidable (164)

Answer 4

-if either fraudulent/material proved, the contract is voidable by the recipient.
-the recipient has to be justified in relying on the other party’s false statements
-

Question 5

When a misrepresentation is an inducing clause (167)

Answer 5

a misrepresentation induces a party’s manifestation of assent if it substantially contributes to his decision to manifest his assent.

Question 6

Mistake Defined (151)

Answer 6

a mistake is a belief that is not in accord with the facts

Question 7

When a mistake of both parties makes a contract voidable (152)

Answer 7

• basic assumption on which parties made the deal

- material effect on agreed upon consideration

Question 8

When a party bears the risk of a mistake (154)

Answer 8

• allocated to him by agreement
• allocated to him by the court because reasonable to do so under the circumstances
• don’t know and know you dont know, you assume the risk

Question 9

Mental Illness or defect (15)

Answer 9

a person incurs only voidable contractual duties by entering into a transaction if by reason of mental illness or defect

• he is unable to understand in a reasonable manner the nature and consequences of the transaction
• he is unable to act in a reasonable manner the nature and consequences of the transaction