BUS311_chapter_05

Nonethelessthelawtypicallyrequiresawrittendocumentinon

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Unformatted text preview: have to have an economic loss to avoid the contract. His damage is that the deal he thought he was getting is not the one he wound up with! Remember, fraud is intentional. Sometimes negligent or innocent misrepresentation may affect the legal status of a contract, but the rules differ from state to state. Duress Duress occurs when one party (shall we keep calling him Bad Guy?) uses wrongful coercion to get the other (yes, Victim) to make a contract. For example, BG shows Vic a gun/threatens to beat him up/burn his house down/beat up his girlfriend/file criminal charges against Vic, in order to get Vic to pay $10,000 for BG’s car. All of these threats are unlawful coercion and would be duress, allowing Vic to void the contract (once he feels safe!). If BG threatens Vic with a civil lawsuit, that is perfectly lawful and Vic cannot void the bargain. That is an example of what lawyers call “tactics”; in other words, do what I want or I’ll sue you. Undue Influence The concept of undue influence is difficult to define but...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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