Chapter 15 & 16 Business Law

collateral promise

A secondary promise that is ancillary to a principal transaction, made by one person to pay another's debts if they fail to perform, requiring written form to be enforceable.

integrated contract

A written contract that serves as the final expression of the parties’ agreement, with extraneous evidence that contradicts it being inadmissible.

parol evidence rule

A substantive rule that prohibits evidence of prior negotiations or agreements that contradict the terms of a written contract.

prenuptial agreements

An agreement made before marriage defining each partner's ownership rights, which must be in writing to be enforceable.

Statute of Frauds

A state statute requiring certain types of contracts to be in writing to be enforceable.

adhesion contracts

Standard-form contracts in which the stronger party dictates the terms to the weaker party.

bilateral mistake

A situation where both parties to a contract are mistaken about the same material fact.

Duress

Actions or threats that force someone to act against their will or better judgment.

innocent misrepresentation

A false statement made in good faith that deceives and causes harm to another party.

latent defects

Defects that are not obvious and cannot be easily identified.

negligent misrepresentation

An untrue statement made without reasonable care to ascertain the facts, resulting in misleading others.

Scienter

Knowledge by the misrepresenting party of false representations or omissions made with intent to deceive.

undue influence

Persuasion that exceeds mere advice and leads a person to act according to the desires of a dominating party.

unilateral mistake

A mistake in which only one party to a contract is mistaken about a material fact.

voluntary consent

A knowing and voluntary agreement to contract terms; absence renders the contract voidable.