Defense of fraud, misrepresentation, duress, undue influence, mistake, or illegality 5. Existence of conditions which make conditional a party’s obligations under a contract 6. A later agreement (agreements “after” the original contract is made) 7. Clarify an ambiguity (vagueness)
Conduct or Circumstances Invalidating Consent: Invalidating Consent: Subjective Test: was there real consent, or was the formation of contract process tainted in some way? Remedies Available to Aggrieved Party: 1. Rescission: “undo” the contract 2. In some cases, money damages may be recoverable Statutes that Address Certain Types of Contracts: where abuse in the formation process can occur; so state regulation may be appropriate Unfair Marketing and Trade Practices Advertisements, Announcements, Statements, or Representations: made to the public; subject to anyone 1. The defendant made a representation to the public with the intent to cause a contract to be formed 2. The representation was false or misleading 3. The representation caused a loss to the plaintiff Home Improvement Agreements Fraud in the Execution: switched documents scenario; rare
Third Parties to Contracts:
Performance, Breach, and Discharge:
Sale of Goods:
Cases: 1. “New England Rock” – Consideration (Modifications) Rock Services (subcontractor) allowed to have modifications in contract with Empire (contractor) because Empire did a poor job maintaining the work site 2. “Bouton” – Promissory Estoppel Daughter leaves teaching to help dad with ranch with the hopes to take over the land she was promised; father then sells all of the land and gives away the money; daughter sues for promissory estoppel for all the salary lost from not teaching; she wins 3. “Anderson” – Exculpatory Clauses Anderson signs contract saying she will accept all responsibility for injury with the new health club, and she is negligently pushed into an injury by trainer; she loses because she still agreed to the contract 4. “Payroll Advance” – Non-Compete Agreement Yates signs an employment agreement, then leaves to a different company; employment agreement has insane requirements that he technically was breaching; he ends up winning because they were “unreasonable under the facts and circumstances” 5. “Reed” – Fraud Reed buys house and isn’t told about the deaths that occurred in the house years before; seller did this intentionally; market value is lower and Reed sues and wins rescission and damages 6. “Maroun” – Fraud Maroun accepts this new job where expects many things, gets fired a few months later; sues for the rest of the money he was promised; and doesn’t receive it; “an action for fraud or misrepresentation will not lie for statements of future events; predictions 7. “Burningham” – Mutual Mistake Burningham agrees to buy real estate from Westgate; both are misinformed about part of the real estate but Burningham has already paid the deposit; they
You've reached the end of your free preview.
Want to read all 15 pages?
- Spring '12