the obligations of the contract (minor can back out) executed- if full performed obligations (minor can back out) ratification- if they turn 18 then say they’ll do it (minor is bound) Mentally insane Make void contracts
Adjudicated insane: incompetent by court, cannot make contracts unless for necessities of life which makes in a quasi contract , just void Can sometimes be temporarily insane and get out of the insanely made contracts Can be “insane in fact” without even formally being evaluated, does not understand, voidable People who are intoxicated (only sometimes) If you’re thinking is cloudy because of a substance May be voidable if extremely intoxicated But usually, most people who have been drinking cannot end up backing out (6) Reality of consent problems- consent of one or both parties was not in fact genuine Fraud and innocent misrepresentation Innocent misrepresentation: if plaintiffs prove all elements of fraud except that defendants believed their false statements were true (can rescind contract but not get damages) Duress: if someone puts wrongful force on you to make you sign a contract you would not have normally signed Fear must be apparent Force can mean the threat of harming another if you do not sign Totem Marine Tug & Barge v. Alyeska Pipeline Economic duress is beginning to be more known (page 369) Mistakes: Usually stuck with it but sometimes allowed (bilateral) Bilateral/mutual mistakes: both sides in a deal are wrong, sometimes will allow you to get out of it if there is a mutual mistake regarding the existence, the identity or the character of the subject matter of the contract Beachcomber Coins v Boskett Unilateral mistakes are usually not allowed, but rarely are permitted (page 367) Undue influence: the defendant dominated the will of the plaintiff Usually occurs between extremely rich elderly and a much younger spouse/nurse/etc to sign over assets in a way that seems to take advantage of the relationship Have to show- plaintiff was induced by virtue of dominant party’s power, and that the dominant party used this power to take advantage of him/her In addition- some states allow for three day cooling off period between consumers and door-to-door salespeople (7) Writing: Most can be verbal, but some contracts have to be in writing If it is supposed to be in writing but is not, it is unenforceable
Statute of frauds:- requires some to be in writing, 4 major contracts and some minor contracts Promises to pay another’s debts 3 elements of a guaranty contract will pay debt if debtor does not (secondary liability) guaranty promise is made for the benefit of the debtor guaranty promise is made to the creditor, not to the debtor Real estate Must be land or real property Includes interest in land- mortgages or easements (page 372) Can be enforced if the buyer has paid all/taken
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