If all elements of fraud are present except that the person making the false

If all elements of fraud are present except that the

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If all elements of fraud are present, except that the person making the false statement honestly/reasonably believed the statement to be true o P still can rescind contract, but no damages are awarded o No injury required Mistake o No remedies for bad judgement o If it was a mutual mistake by both parties of a fact, then either can rescind o If it was a unilateral mistake, but other party knew or should have known that party can rescind If it was only parties mistake no rescission unless for following exceptions Mistake was one of negligence (misreading of plans, mistake in math) Rescission would cause no injury to non-mistaken party other than loss or false bargain Holding the mistake party to his bid would be unconscionable o Mutual mistakes on value of item are not rescindable Duress o When a party is forced to enter into a contract o If a person enters a contract because failure to do so will incur the wrath of a third party such as employer or spouse, no relief is granted o But if degree of force robs person of free will, duress exists, and contract can be rescinded o Need fear to prove duress Genuine fear that injurious, unlawful act will happen by not acting accordingly to other party’s terms Threat of criminal suit regardless of guilt Exception: threat of civil suit doesn’t count Undue Influence o If older person can show That he was induced to enter particular contract by virtue of the dominate party’s power and influence, rather than using his own volition 50
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The dominant party used this power to take advantage of him, undue influence is established; no freewill o Rescission allowed Home Solicitation Statutes o There is a 3-day period where you can cancel contract for any reason if: The contract is over $25 Sale was initiated by seller Contract was completed at a place other than the sellers place of business Contracts made by minors o A person without full capacity can void a contract made only if party without capacity makes an objection o Minor can object within a reasonable amount of time after reaching 18 or time of contract o Disaffirmance = minor, bfore he comes an adult, can say no intention of being bound or doesn’t perform contract can void it o When contract is performed = minor can still disaffirm contract but would have to pay for any damages in some states but others you pay nothing Exceptions: firms that provide necessities (medicine, food) can deal with minors and not worry about rescission Exculaptory Clauses o Can't hold me liable for being negligent o Involve recreational activites that are completely optional on the part of participant and don’t affect public interest o Doesn’t bar negligence claim where using party provides essential to everyday life (apartments, hospital, legal services, utilities) unless it is: Written clearly Conspicuous Unconscionable Contracts o The freedom to contract is abused so that the terms of a particular contract are so extremely unfair to one of the parties in light of business practices that they “shock one’s conscience” o
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