ch 13 - signing but had been fraudulently induced to enter...

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Ch 13 Genuineness of assent- the requirement that a party’s assent to a contract be genuine. Unilateral mistake- a case in which only one party is mistaken about a material fact regarding the subject matter of a contract. Mutual mistake of fact- a mistake made by both parties concerning a material fact that is important to the subject matter of the contract. Mutual mistake of value- a mistake that occurs if both parties know the object of the contract but are mistaken of its value. Fraudulent misrepresentation- an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation. FRAUD Scienter- knowledge that a representation is false or that it was made without sufficient knowledge of the truth. Fraud in the inception- fraud that occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing. Fraud in the inducement- Fraud that occurs when the party knows what he or she is
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Unformatted text preview: signing but had been fraudulently induced to enter into the contract. Fraud by concealment- Fraud that occurs when one party takes specific action to conceal a material fact from another party. Innocent misrepresentation- fraud occurs when a person makes a statement of fact that he or she honestly and reasonably believes to be true even though it is not. Undue influence- a situation where one person takes advantage of another persons mental, emotional, or physical weakness and unduly persuades that person to enter into a contract. The persuasion by the wrongdoer must overcome the free will of the innocent party. Duress- one party threatens to do a wrongful act unless the other party enters into a contract. Economic duress- one party to a contract refuses to perform his/her contractual duty unless the other party pays an increased price, enters into a second contract with the threatening party, or undertakes a similar action....
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This note was uploaded on 06/29/2008 for the course BUS LAW 2301 taught by Professor Villareal during the Spring '08 term at Dallas Colleges.

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