Lecture on Contract Law: Voiding Contracts, Breach, and Damages

These flashcards cover key concepts in contract law regarding voiding contracts, breach, damages, and related principles.

What are the common grounds for voiding a contract?

Mistake, Misrepresentation, Duress, Unconscionability, Frustration, Impossibility.

What must a mistake have for a contract to be voidable?

It must be significant, mutual, and exist at the time of agreement.

What is misrepresentation in contract law?

An untrue factual statement that induces the other party to enter the contract.

What distinguishes innocent, negligent, and fraudulent misrepresentation?

Innocent and negligent do not involve intent to deceive, while fraudulent involves knowledge of falsehood.

What is duress in the context of contract law?

Improper pressure, threats, or coercion used to induce a contract.

Define unconscionability in contracts.

A contract that is so unfair or one-sided that enforcing it would be offensive to the court.

What is frustration in contract law?

An unforeseen event makes performance impossible or of no value.

What is a force majeure clause?

A list of events beyond the parties’ control providing relief when those events occur.

What is the difference between liquidated damages and penalties?

Liquidated damages are pre-estimated losses; penalties are punitive payments not tied to actual loss.

What must an injured party do regarding damages?

They must take reasonable steps to mitigate their loss.

What is the significance of the case Peter Kiewit v. Eakins?

It illustrates that performing extra work without agreement on payment can forfeit claims for extra payment.

What does 'performing under protest' mean?

Giving written notice to perform work while reserving the right to claim additional payment later.

What are three limitations on damages?

Mitigation, Not Speculative, and Remoteness.

What is the main pathway for disputes before going to court?

Negotiate first, then mediation, followed by arbitration.

What happens in the case of a fundamental breach?

It deprives the innocent party of all or substantially all of the benefit of the contract.