A debt in which there is no genuine basis for good faith dispute as to

A debt in which there is no genuine basis for good

This preview shows page 48 - 51 out of 63 pages.

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 Estoppel o Enforces promises o Must rely on promise o If 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 o If you promise a gift after someone does something even if that induced detriment than you don’t have to give them anything Promises to charity o Once you pledge money to charity, church, hospital, colleges you have to pay it no matter what Statutes of limitations on debt o If statute runs out on debt runs out but debtor pays a partial amount of debt then the statute is renewed and creditor can bring action Why Contracts Fail (Chap 13 and 14) Voidable o Contracts that are valid in every aspect but it turns out that the apparent consent of one or both of the parties was not genuine Fraud, innocent misrepresentation, mistake, duress, or undue influence Fraud o The intentional misleading of one person by another o Lying about material fact o Result = rescission (trying to put everything back before contract) o Elements (must show all) 48
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D made a misrepresentation of a material fact The statement was made with intent to deceive (D knew or should have known that statement was false) P reasonably relied on the statement P suffered an injury as a result Misrepresentation of Fact o Failure to disclose a fact is not fraud o Statements of law by a nonlawyer, official, etc. is not fraud because they are not in good authority to trust their statements o Interpreted to include any word or conduct that causes the innocent person to reach a false conclusion of fact o Material = important o Statement of fact = income, acerage, age of product o Doesn’t apply to future forecasts (except warranties) o Doesn’t apply to opinions unless they are an expert Exception of Silence: Intentionally withheld information, concealment, silence as a part of a plan to deceive Hidden 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 info Intent to deceive o P must prove that statement was fact at a time it was made and D knew or should have known o Or a statement with a reckless disregard for the truth Reliance o P must prove reliance on misleading statement at time of contracting Doesn’t exist if P knew the facts before contract o Buyer can't believe everything they’ve been told Remedies for Fraud o P has right to rescind the contract after proof of fraud If P does this he must return consideration to restore orginal position 49
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o P can keep consideration and sue for damages Damages are usually the difference between actual value and false value P can also get punitive damages on top of difference Innocent Misrepresenting o
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