CH 11: Conduct INVALIDATING Mutual Assent

Genuine Assent

A valid agreement entered voluntarily and knowingly.

Misrepresentation

A false statement of material fact inducing another party to enter a contract.

Fraud

Intentional misrepresentation made to deceive another person.

Undue Influence

Improper pressure exerted by a dominant party over another.

Duress

Wrongful threat that deprives someone of free will.

Mistake

An erroneous belief regarding a material fact.

Consideration

Something of legal value exchanged between contracting parties.

Bargained-for Exchange

Each side must give something and receive something.

Adequacy of Consideration

Courts generally do not evaluate whether the bargain was fair and look only for the existence of consideration.

Preexisting Duty Rule

A promise to perform a duty one is already legally obligated to perform is not valid consideration.

Past Consideration

Acts performed before a promise is made generally cannot serve as consideration.