BLAW Genuine Assent

Recognized Unilateral Mistake

When one party is mistaken about a fundamental fact or term and the non

Effective rescission

This is the complete termination of a contract, with both parties returning anything they have given

Reasonable Reliance

Even though a statement is material, there is no misrepresentation unless the victim reasonably relied on it.

Genuine Agreement

Both parties involved fully understand and freely consent to the terms of a contract.

Punitive Damages

Financial awards ordered by a court to punish a defendant for outrageous, intentional, or grossly negligent behavior.

Economic Duress

Occurs when one party uses improper or unlawful financial threats to force another party into signing or modifying a contract against their free will.

Elements in Undue Influence

When someone in an authority position tries to influence their dependent’s decision. Ex: A caretaker forces the dependent into signing a contract.

Innocent Misrepresentation

A false statement that convinces someone to enter a contract, but the mistake was made without intent to deceive. The person making the statement genuinely believes it's true.

Opinion vs Fact

Only false statements in fact can lead to legal liability. Opinions hold no weight and cannot be taken as guarantees.

Materiality

Whether a piece of information is important enough to influence the decision of a reasonable person.

Silence vs Disclosure

Silence is actively withholding critical information, while disclosure means revealing critical information.

Bilateral vs Unilateral Mistake

Bilateral mistake is when both people misunderstand a part of the contract and unilateral mistake is when only one person misunderstands a part of the contract.

Rescission

The legal cancelation of a contract that completely erases the agreement and returns both parties to their original positions.

Ratification

When a company or person officially approves and accepts a contract or action that was previously done on their behalf without their initial permission.

Types of Duress

(forcing someone into an unfair contract through wrongful threats or physical pressure, making the agreement invalid) Physical duress is threats of bodily harm. Economic duress is threats of financial ruin

Induced unilateral mistake

when one party enters a contract under a false belief because the other party actively misled them or took unfair advantage of their error

Mutual mistakes subject

when both parties in a contract hold the same incorrect belief about an essential fact, making the agreement void

Mutual mistakes of Law

both parties in a contract share the same wrong understanding of a legal rule.