BusinesslawC11

BusinesslawC11 - Business Law- Chapter 11 Conduct...

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Business Law- Chapter 11 February 11, 2009 Conduct Invalidating Assent Duress, Undue Influence, Fraud, Nonfraudulent Misrepresentation, Mistake -Assent must be voluntary Duress- any wrongful or unlawful act or threat that overcomes the free will of a party 1) some threat exists and consent is induced 2) the person has no other alternative but to assent at that time -physical compulsion- actual physical force ( voids the agreement) -improper threats- coercion, etc. ( voidable at option of the coerced party) subjective- even if it may not have induced assent in one person, but did to this person it counts as an improper threat! Berardi v. Meadowbrook Mall Company- Berardis were delinquent in rent. Meadowbrook filed suite and the berardies said they did not have a defense and agreed to a consent judgement. Meadowbrook promised that no steps to enforce judgement would be undertaken as long as the restaurants still operated (this all happened in Ohio) Meadowbrook then filed and obtained a lien (by doing so they impeded the refinancing) IN WEST VIRGINIA Under the US constitution if you get a judgement in one state you can bring it to another state. They brought it to WV because Berardi’s have property in WV Now the WV lendor would have to pay the mall all of the income from their property before he gave the berardis any Berardis then made an agreement of a payment plan- 1997 Berardis then filed (in 2000( a complaint by saying that Meadowbrook breached the 1990 agreement by attempting to enforce the 1990 judgements -> said that Meadowbrook improperly threatened them Summary judgement granted in circuit court an affirmed by supreme court Court reasoning: duress is not an excuse to avoid contract. Plaintiffs must produce objective evidence of their duress. Also, the Berardis were sophisticated business people with substantial assets and considerable net worth. They took time, had the advice of counsel and understood what they were signing.
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BusinesslawC11 - Business Law- Chapter 11 Conduct...

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