Status and conduct before K (avoiding enforcement)

Question 1

Minors

Answer 1

Can disaffirm any time during minority or within reasonable time after majority.

Question 2

Minor-Majority Rule

Answer 2

Majority rule: Minor entitled to full refund. Trend- to offset for depreciation and use. Minor can expressly disaffirm the K after reaching majority age OR minor can espressly ratify the K.

Question 3

Minor-EXCs

Answer 3

1. Doctrine of Necessaries: Attention to minor’s circumstances. Liable for reasonable value. 2. Statutory: Adoptions, Military, Insurance, Etc. (can’t disaffirm)

Question 4

Mentally incapacitated-Majority

Answer 4

Cognitive: Did party lack the capacity to understand nature and consequences at the time the K was entered into

Question 5

Mentally incapacitated-Minority

Answer 5

Volitional: Was party unable to act in reasonable manner & did other party have reason to know

Question 6

Mentally incapacitated-Must?

Answer 6

restore ofther party. EXC: bad faith by other party

Question 7

Duress

Answer 7

Wrongful or improper act that leaves party with no reasonable alternative but to agree to D’s terms

Question 8

Misrepresentation

Answer 8

1. assertion not in accord with the facts 2. Fraudulent or Material 3. Assertion relied on 4. Reliance justified?

Question 9

Concealment

Answer 9

Affirmative conduct intended to keep another from learning a fact

Question 10

Nondisclosure-Gen rule

Answer 10

No duty to disclose

Question 11

Nondisclosure-EXCs

Answer 11

Statutory, new info, real estate, misapprehension, fiduciary relationship

Question 12

Undue influence-characterized by

Answer 12

Improper persuasion of weaker party ny stronger party. Must be special/fiduciary relationship.

Question 13

Undue influence-Factors

Answer 13

unusual place/time, no opp to obtain 3rd party advice, multiple persuaders, immediate decision

Question 14

Unconscionability

Answer 14

Two part test: Procedural and Substantive

Question 15

Unconscionability-Procedural

Answer 15

Lack of meaningful choice. Factors: fine print, standard form, no opp to bargain, education/financial status

Question 16

Unconscionability-Sunstantive

Answer 16

Terms unreasonably favorable. Factors: terms extreme measured by business practices, excessive price, dragnet clause

Question 17

Unconscionability-Arbitation

Answer 17

1. clause of K 2. unconscionable?

Question 18

Mistake

Answer 18

belief not in accord with the facts

Question 19

Mutual mistake

Answer 19

1. Goes to basic assumption on which K made 2. materially affects performance 3. no assumption of the risk (voluntary, conscious ignorance, allocated by ct)

Question 20

Unilateral mistake

Answer 20

Same as mutual mistake + Unconscionable/oppresive & no undue hardship on other party OR other party knew or had reason to know