Contracts Capable Form - Contracts: Capable? Form? Consent...

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Contracts: Capable? Form?
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Consent Misrepresentation Fraud Mistake Duress
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Misrepresentation and Fraud: Distinction Innocent misrepresentation means the owner believes the statement to be true and has a good reason for that belief. Fraudulent misrepresentation means the owner knows that the statement is false.
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Misrepresentation and Fraud: Rescission To rescind a contract based on misrepresentation or fraud, a party must show three things: (1) there was a false statement of fact; Puffery (exaggerated “sales talk”) is not a statement of fact. (2) the statement was fraudulent or material; and (3) the injured person justifiably relied on the statement.
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Plaintiff’s Remedy for Fraudulent Misrepresentation If the maker’s statement is fraudulent, the injured party generally has a choice of rescinding the contract or suing for damages.
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Special Problem: Silence/Nondisclosure Nondisclosure of a fact is misrepresentation only when disclosure is necessary: To Correct a Previous Assertion To Correct a Basic Mistaken Assumption To Correct a Mistaken Understanding about a Writing In A Relationship of Trust
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Mistake -- Bilateral A bilateral mistake occurs when both parties negotiate based on the same factual error. If the parties contract based on an
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This note was uploaded on 04/09/2012 for the course BA 3301 taught by Professor Stanb during the Spring '09 term at University of Houston - Downtown.

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Contracts Capable Form - Contracts: Capable? Form? Consent...

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