Unenforceable Contracts

Question 1

What is Duress

Answer 1

Physically forced or threatened and extorted to sign a contract

Question 2

Undue Influence

Answer 2

Influence of a dominant party (Cult)

Question 3

Unilateral Mistake

Answer 3

one party makes a mistake but that makes the contract enforceable
-unless identity is relevant ie extending credit

Question 4

Mutual mistake

Answer 4

• Both parties make a mistake

- unenforceable if subject matter is unique

Question 5

Non est Factum

Answer 5

• Where someone is unable to read or get assistance

- Mistaken as to the nature of the contract

Question 6

Rectification of a contract (exclusion of Contract)

Answer 6

• Clerical error
• neither party aware of signing
• Clear unambiguous contract ( more then one interpretation)
• No intervening negotiations

Question 7

Misrepresentaion

Answer 7

Misstatement of material fact (damages value of item)

Question 8

Innocent misrepresentation/Negligent Misrepresentation

Answer 8

Reasonable grounds the false statement was true

penalty - Expenses and or rescission

Question 9

Fraudulent misrepresentation

Answer 9

Giving false statements of facts even though you know the truth
Expenses or rescission
Damages (money missed out)

Question 10

Misrepresentation by non disclosure

Answer 10

no leaving any details out that regard to the contract (omissions)
Utmost good faith contracts
-insurance
-agency
-partnership
-trust

Question 11

Privity

Answer 11

Only parties to a contract have rights and responsibilities

Question 12

novation

Answer 12

replacement of a party with consent

Question 13

What does Statutory assignment mean and entails

Answer 13

Statutory assignment is when a company gives a contract to another company

-written assignment agreement between assignor and asignee
-signed by assignor
-absolute/complete turnover of the contract
written notice of assignment deliver to promisor

Any contract can be signed unless prohibited or for personal service ie musician

Question 14

how to be discharged from a contract

Answer 14

1 performance of the contract
2 exercise an option to terminate
3 non occurrence of a condition precedent
 -something to start a contract
4 occurrence of condition subsequent
 -something happens contract void
5 occurance of implied term
 -act of god
6 Doctorine of frysrration
 -unable to perform a contract and its beyond your control
7 Operation of law
 -law makes it illegal
8 Subsequent agreement

Question 15

Breach

Answer 15

Fail to comply with a contract

Question 16

What is express Repudiation

Answer 16

Refusal to do contract

Party suffer from breach is discharged but can sue for damages or other remedies

Question 17

Anticipatory Breach

Answer 17

intention to fail resulting in breach

Question 18

Doctorine of substantial Performance

Answer 18

Breach of Contract when something is done, Put in the position whatever it takes to make the contract whole

Question 19

Fundamental Breach

Answer 19

Work however no value(worthless)

Question 20

Exemption clause

Answer 20

Exempts the person who drafted the contract making it so they cant be sued

Question 21

what do you sue for breach

Answer 21

Monetary Damages
General Damages
Equitable Remedies
Liquidated Damages

Question 22

What are general Damages

Answer 22

Reliance damage -money expended before the breach

Consequential Damages- Flaw from the breach includes third party liability

Expectation Damages-Lost profit

Question 23

what are Equitable Remedies

Answer 23

Specific performance
-unique items
Injunction - Court order to cease activity

Question 24

What are Lqiuidated Damages

Answer 24

Contract set out these clauses so you cant sue
Preset damages
reasonable estimate of costs