BUS311_chapter_05

Vicbuys thehouseandtwoweekslaterfallsthrough the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: or simplicity, since either party could be plaintiff or defendant in a contract fraud case, we will refer to the person committing the fraud as “Bad Guy” and the person seeking to void the contract as “Victim.” There are two basic types of contract fraud. The first is fraud in the execution, where Victim is deceived in such a way he does not even realize he’s made a contract. For example, suppose Vic is asked by Bad Guy to sign a guest book, but there is a carbon sheet underneath that transfers Vic’s signature to a contract to buy BG’s car. The contract will be voidable at Vic’s option: he could still buy the car if he wanted to. The second type of fraud is fraud in the inducement, where Vic knows he is making a contract but is deceived as to some aspect of the subject matter. The remainder of our examples deal with this type, which is far more common. rog80328_05_c05_089-110.indd 95 10/26/12 5:37 PM Section 5.3 Genuine Assent CHAPTER 5 Note that while generally silence is not making a false statement and thus not fr...
View Full Document

Ask a homework question - tutors are online