If contract is entirely executor not yet in progress minor can disaffirm If

If contract is entirely executor not yet in progress

This preview shows page 13 - 15 out of 34 pages.

If contract is entirely executor (not yet in progress), minor can disaffirm If contract is executed (finished), minor can disaffirm only if it will not cause a loss to the other party Contracts that cannot be disaffirmed o Marriage, military enlistment, those made with court o Torts and crimes Mental infirmity Adjudicated insane – formally declared incompetent by a court after hearings and examination by psychologists or psychiatrists Insane in fact – at time contract was made, person was so impaired that he or she was incapable of understanding the nature and effect of the particular agreement Intoxication Must establish that he/she was so intoxicated as not to understand the nature of the purported agreement; required to return full consideration received Reality of Consent When apparent consent of one or both parties was not genuine Fraud Intentional misleading of some person by another Elements:
Image of page 13
o Misrepresentation of material fact – any word or conduct that causes the innocent person to reach an erroneous conclusion of fact; must be statement of fact Exceptions: Predictions – not statement of fact Opinions Value (owner’s opinion bc they value their own things differently) Law – statements of law made by lay persons not considered statement of fact and not basis for fraud Silence – is a basis for fraud if: o Sale of property has hidden defect o Fiduciary relationship exists o One party has superior knowledge about subject matter of contract as result of his or her experience, training, or special relationship with subject matter o Intent to deceive – knowledge of falsity Reliance – victim of misrepresentation must show he/she reasonably relied on misstatement at time of contracting Injury – innocent party must show he/she suffered an injury as a result of misrepresentation Remedies o Rescission and return consideration o Keep consideration and sue for damages Innocent Misrepresentation Person making misstatement honestly and reasonably believed statement to be true Not considered fraud Victim can rescind but no remedies Mistake Must be mistake of fact for right to rescind Mutual mistake – both parties mistaken at time of contracting, either can rescind Unilateral mistake – only one party to contract was mistaken about fact o Rescission not allowed unless mistake was apparent to other party Additional types of mistakes o Provisions of contract itself – if unilateral, party is bound by contract o Value of article being sold – mistake of opinion not fact so bound by contract o Mistake of law – can rescind Duress Forced to enter into contract; degree of compulsion is so great as to rob one party of free will Need genuine and reasonable fear on part of victim that he or she will be subjected to an injurious unlawful act by not acceding to the other party’s demands Economic duress o One party involuntarily accepted terms of another o
Image of page 14
Image of page 15

You've reached the end of your free preview.

Want to read all 34 pages?

  • Spring '08
  • Baker
  • parties

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes