Party relied on the statement and the statement was

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party relied on the statement and the statement was untrue and unfactual. The fact that the salesperson had no actual knowledge is no defense. The salesperson acted in reckless regard for the truth and the other party was harmed by the unfactual statement (it is interesting to note, that if the car had NOT been involved in a prior accident, the salesperson's statement, though made recklessly, would NOT be an untrue statement of material fact-not fraud). 5.) What actions may constitute duress?
Emotional duress or psychological duress occurs where physical duress is lacking, yet tremendous pressures are placed upon one of the parties to enter into a contract. For example, a blackmail threat to reveal an unflattering, unrelated fact concerning one of the parties should he refuse to enter into the contract is an example of emotional duress. Economic duress is duress in which one party to a potential contract threatens business or financial ruin if the other party fails to enter into a contract desired by the other. There exists a fine line between economic duress and simply driving a hard bargain during negotiations. However, any threat to destroy a business or livelihood, would constitute economic duress. With any of the three primary types of duress, a court may disallow any enforcement of a contract. 6.) What is undue influence and how does undue influence differ from duress?

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