BLAW Test #2 Review - BLAW Test #2 Review Ch. 14 Voluntary...

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BLAW Test #2 ReviewCh. 14 Voluntary ConsentValid contracts can be unenforceable if parties have not genuinely agreed to termsVoluntary consent= Knowledge of and genuine assent to the terms of a contract, “understanding is a two way street”If one party does not voluntarily consent to the terms of a contract then thereis no genuine “meeting of the minds”, and is not enforceable by lawUsually occurs because of mistake, fraudulent misrepresentation, undue influence, duressA party who demonstrates they did not agree to terms can choose to either carry out contract or rescindTypes of Mistakes1.In certain circumstances contracts can be voided bc of mistakes, but only mistakes of facta.Cannot rescind mistakes of value or quality2.Two forms of mistakes of fact: bilateral and unilateral3.Unilateral Mistakes- is a mistake made by only one party on material facts meanings facts relevant to the subject matter of the contracta.Usually does not give the mistaken party any right to rescind the contract because the contract is usually enforceableb.An exception to this rule is that if the other party to the contract knows or should have known that a mistake of fact was madec.Another exception is that if the contractors bid was significantly lowerthan it should of from a resulting mathematical mistake the bid may be rescinded4.Bilateral Mistakes- When both parties are mistaken about the same material fact the contract can be rescinded by either partya.If parties to the contract mutually misunderstand the interpretation ofsomething in the contract they may allow the contract to be rescindedFraudulent Misrepresentation1.Fraud affects the authenticity of the innocent party’s consent to a contracta.Contract can usually be voided if they did not voluntarily consent b.Fraudulent misrepresentation refers only to misrepresentation that is consciously false and is intended to mislead anotheri.The person making the fraudulent misrepresentation knows orbelieves that the assertion is false or knows that she or he does not have a basis for the assertion2.Typically fraud involves three elements:a.A misrepresentation of a material fact must occurb.There must be an intent to deceivec.The innocent party must justifiably rely on the misrepresentationi.Additionally to collect damages a party must have been harmedas a result3.Misrepresentation has Occurred- is first element of fraud
a.Showing misrep. has occurred, which can occur by words or actionsb.Misrep. by conduct- When a party takes specific action to conceal a fact that is material to the contract. Or if a seller untruthfully denys knowledge of facts that are material to the contract when the buyer requests such infoc.Statements of Opinion- Opinions and predictions are generally not subject to claims of fraud, basically anything that is not a fact or could be up to subject of debate.

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Term
Spring
Professor
Clark

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