New Blaw test

Mutuality of Assent

A Party may rescind from a contract he/her entered into because of:

• Misrepresentation

• Fraud

• Duress

• Undue Influence

• Mistake

Fraud

• Defendant misrepresented a material fact to the plaintiff

• It has to be intentional

• Plaintiff must have reasonably relied on the misrepresentation

• Plaintiff was injured as a result of the misrepresentation

Legality of Purpose

• Contract is not enforceable surrounding illegal matters

• or contract to public policy

Oral Contracts

• Generally enforceable

• Exceptions: Collateral, Real Estate Sales, Contracts that cannot be done in under a year, Sales of Goods contracts over $500, Contracts dealing with marriage

Delegation of Duties

Doesn’t delegate liabilities

Statute of Limitations

Prohibits filing a lawsuit after a certain period of time after the action the suit is based on.

After the deadline contracts are no longer enforceable, in PA it’s 4 years

Condition Precedent

Clause providing that an event must occur before the parties sign the contract

Condition Subsequent

Clause excusing performance if a future event occurs

Discharge of Contractual Obligation because of of legal excuse of nonperformance

Reasons

• Impossible

• Commercial Impartibility

• So difficult, dangerous, or expensive that the value of the contract is gone

Discharge by Agreement

If parties enter into a contract but decide on different terms, the original contract can be discharged with an accord and satisfaction

Accord

New contract with different performance obligations

Satisfaction

A Complete performance of an Accord