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Chapter 10 – Performance and Breach of Traditional and E-ContractsIntroduction to Performance and Breach of Traditional andE-ContractsOnce a contract is formed, the parties owe a duty to perform itThis 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 forbreach of contract.Genuineness of AssentGenuineness of Assent– The requirement that a party’s assent to a contract be genuineMay be missing because a party entered into a contract based on mistake, fraudulent misrepresentation, duress, or undue influence.Unilateral MistakeUnilateral Mistake– A mistake in which only one party is mistaken about a material fact regarding the subject matter of a contractMutual Mistake of a Material FactMutual Mistake of a Material Fact– A mistake made by both parties concerning a material fact that is important to the subject matter of a contractThis could occur with an ambiguity, which is when a word or term in a contract is susceptible to multiple interpretations. No meeting of the mindsMutual Mistake of ValueMutual Mistake of Value– A mistake that occurs if both parties know the object of the contract but are mistaken as to its valueContract remains enforceable by either partyFraudIntentional 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 damagesTo prove fraud, the following elements must be shown:oMisrepresentation of a material fact – see above
oIntent to deceive/ Scienter- Knowledge that a representation is false without correctionoReliance on the misrepresentationoInjury to the innocent partyDuressDuress– A situation in which a party threatens to do a wrongful act unless another party enters into a contractUndue InfluenceUndue Influence– A situation in which one person (dominant party)takes advantage of anotherperson’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 partyStatute of FraudsStatute of Frauds– A state statute that requires certain types of contracts to be writingIntends that important terms of a contract are not forgotten, misunderstood, or fabricatedContracts Involving Interests in Real PropertyReal Property– Land itself, as well as buildings, trees, soil, minerals, timber, plants, crops fixturesand other things permanently affixed to the land or buildingsoEx. Built-in cabinets in a house are fixtures