BUSLAW EX4

fuck you. exam four.

mistake of value

contract remains enforceable

mistake of fact

contract is voidable

unilateral mistake

one party mistakes material facts of contract

* not voidable unless:
* other party knows or should have known of the mistake of fact
* a substantial mathematical mistake was made (without gross negligence)

bilateral mistake

both parties mistake the same material facts of the contract

* either party can void contract
* mutual misunderstanding of a basic assumption
* if a word or term is open to more than one interpretation

fraudulent misrepresentation

an intentional or reckless misrepresentation of fact or opinion with the intention to coerce a party into action

statement of fact

can be verified as true or false, fraud

statement of opinion

not fraud


1.  Generally not subject to claims of fraud (i.e., sales puffery), 
2. Except when the statements of are made by an expert and relied upon by a naïve purchaser

undue influence

someone w/ relationship of trust, using power/trust to persuade another to join in a contract that will not benefit them

duress

threat of force or violence

five types of contracts in writing

* land


* marriage
* paying someone else’s debt
* sale of goods of $500 or more
* cannot be completed in less than a year

assignor

person who assigns their rights, transferred to the assignee

obligor

person who delegates their obligations, transferred to the obligee

ways in which a contract can be discharged by performance

Complete performance, substantial performance, and tender

complete performance

if everything stated under contract is fully performed

substantive performance

when most of the performance is complete in good faith (leave minor defects), can be discharged from contract 

tender

an unconditional offer to perform by a person who is ready, willing and able to do so

material breach

no full but less than substantial performance on a contract

anticipatory repudiation

must keep word on future contractual obligations

novation

contract and a third party is substituted (all parties must agree)

* substituted party is discharged then a new contract with og and 3rd party

accord

agreement to perform a different act

satisfaction

performance of the new terms of a new agreement

discharge by operation of law

the material alteration, the statute of limitations, bankruptcy, Impossibility of performance, commercial impracticability, frustration of purpose

impossibility

must be proof that the contract cannot be performed

* when subject matter is destroyed
* one parties personal service contract dies or becomes incapacitated
* when a change in law renders performance illegal

commercial impractability

 unforeseen and unanticipated event creates extreme difficulty to perform obligations results in a discharge

* strikes, war, shortage, hurricane

types of damages

compensatory

consequential

punitive

nominal

liquidated

compensatory

awarded to compensate for a direct loss caused by breach of contract

consequential

indirect awarded for breach of contract because they were or should have been foreseeable by breaching party

punitive

awarded as punishment and deterrence

nominal

damages awarded to innocent when there is no financial loss

liquidated

set in advance by the parties and stated in the contract

specific performance

order by a court requiring the breaching party to perform their obligations in the contract

* only granted in case where money damages are inadequate
* subject matter of the contract is rare or unique, like land, pieces of art, heirlooms
* does not apply to contracts for personal services
* nonbreaching party must have substantially performed or be ready to perform

mitigation

attempt to reduce overall damages once a breach of contract occurs