A debt in which there is no genuine basis for good faith dispute as to existence or the amount owed, compromise agreements are less frequently binding Promissory EstoppeloEnforces promisesoMust rely on promiseoIf someone promises something to another and the promise is going to rely on this promise then it is enforceable despite lack of consideration of promise oIf you promise a gift after someone does something even if that induced detriment than you don’t have to give them anything Promises to charityoOnce you pledge money to charity, church, hospital, colleges you have to pay it no matter whatStatutes of limitations on debtoIf statute runs out on debt runs out but debtor pays a partial amount of debt then the statute is renewed and creditor can bring actionWhy Contracts Fail (Chap 13 and 14)Voidable oContracts that are valid in every aspect but it turns out that the apparent consent of one or both of the parties was not genuineFraud, innocent misrepresentation, mistake, duress, or undue influence Fraud oThe intentional misleading of one person by anotheroLying about material factoResult = rescission (trying to put everything back before contract)oElements (must show all)48
D made a misrepresentation of a material factThe statement was made with intent to deceive (D knew or should have known that statement was false)P reasonably relied on the statementP suffered an injury as a resultMisrepresentation of FactoFailure to disclose a fact is not fraudoStatements of law by a nonlawyer, official, etc. is not fraud because they are notin good authority to trust their statementsoInterpreted to include any word or conduct that causes the innocent person to reach a false conclusion of factoMaterial = importantoStatement of fact = income, acerage, age of productoDoesn’t apply to future forecasts (except warranties)oDoesn’t apply to opinions unless they are an expert Exception of Silence:Intentionally withheld information, concealment, silence as a part of a plan to deceiveHidden defect (must be disclosed)Fiduciary relationships One of the parties occupies a position of trust and confidence relative to another If you are a buyer and have fiduciary relationship or superior knowledge you still have to disclose infoIntent to deceiveoP must prove that statement was fact at a time it was made and D knew or should have knownoOr a statement with a reckless disregard for the truthReliance oP must prove reliance on misleading statement at time of contracting Doesn’t exist if P knew the facts before contractoBuyer can't believe everything they’ve been told Remedies for FraudoP has right to rescind the contract after proof of fraud If P does this he must return consideration to restore orginal position49
oP can keep consideration and sue for damagesDamages are usually the difference between actual value and false value P can also get punitive damages on top of differenceInnocent Misrepresenting o
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