Chapter 10 Book notes - Chapter 10 Performance and Breach...

This preview shows page 1 - 3 out of 6 pages.

Chapter 10 – Performance and Breach of Traditional and E- Contracts Introduction to Performance and Breach of Traditional and E-Contracts Once a contract is formed, the parties owe a duty to perform it This chapter covers the topics of genuineness of assent, the writing requirements of the Statute of Frauds, contract performance, discharge of performance, breach of contract, and remedies for breach of contract. Genuineness of Assent Genuineness of Assent – The requirement that a party’s assent to a contract be genuine May be missing because a party entered into a contract based on mistake, fraudulent misrepresentation, duress, or undue influence. Unilateral Mistake Unilateral Mistake – A mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract Mutual Mistake of a Material Fact Mutual Mistake of a Material Fact – A mistake made by both parties concerning a material fact that is important to the subject matter of a contract This could occur with an ambiguity , which is when a word or term in a contract is susceptible to multiple interpretations. No meeting of the minds Mutual Mistake of Value Mutual Mistake of Value – A mistake that occurs if both parties know the object of the contract but are mistaken as to its value Contract remains enforceable by either party Fraud Intentional Misrepresentation (fraudulent misrepresentation or fraud) – An event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation The innocent party can either rescind the contract and obtain restitution or enforce the contract and sue for contract damages To prove fraud, the following elements must be shown: o Misrepresentation of a material fact – see above
o Intent to deceive/ Scienter - Knowledge that a representation is false without correction o Reliance on the misrepresentation o Injury to the innocent party Duress Duress – A situation in which a party threatens to do a wrongful act unless another party enters into a contract Undue Influence Undue Influence – A situation in which one person ( dominant party) takes advantage of another person’s mental, emotional, or physical weakness and unduly persuades that person ( servient party) to enter into a contract; the persuasion by the wrongdoer must overcome the free will of the innocent party Statute of Frauds Statute of Frauds – A state statute that requires certain types of contracts to be writing Intends that important terms of a contract are not forgotten, misunderstood, or fabricated Contracts Involving Interests in Real Property Real Property – Land itself, as well as buildings, trees, soil, minerals, timber, plants, crops fixtures and other things permanently affixed to the land or buildings o Ex . Built-in cabinets in a house are fixtures

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture