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Unformatted text preview: nclude situations involving fraud, duress, undue influence, or mutual mistake of material fact, as well as those where a precondition to the contract was not met, where the contract itself is ambiguous, or where a subsequent modification is involved. 5.6 Chapter Summary O nce we know how a contract is formed, it is necessary to understand how different circumstances can affect the legal status of the contract. Contractual capacity issues, whether relating to a person’s age or mental competence, may make a contract voidable or even void. Even when an offer and acceptance are present, if the situation involves fraud, duress, undue influence, or a mutual mistake of the same material fact, the contract is nonetheless voidable. While oral contracts are generally perfectly legal, a few types of contracts must be in writing to be enforceable.
Some of these circumstances may be beyond our control, but others can be anticipated and avoided. Whether making a contract that is personal or on behalf of...
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