Module 2: Chapter 15: Mistakes, Fraud, Voluntary Consent

Unilateral mistake

1 party in contract mistake of material(significant) fact

Unilateral mistakes: Contract is enforceable unless

- Other party knew of mistake

-mistake was due to substantial mathematical error (2500 instead of 25000)

Bilateral mistake

-Both parties mistake about material fact

- Contract is voidable

Fraudulent Misrepresentation

misrepresentation of material fact, made with intent to deceive, which another party justifiably relied upon

Misrepresentations

-Words or behaviors

-By silence, only if hidden flaw

Puffery

exaggerated or false praise

-Not fraud

Undue Influence

1 party has more persuasion over another in contract, power is equal

-Submissive part can argue a dominant parties undue influence caused decision

Duress

Unlawful threat

Threats to exercise legal rights do not count

Adhesion Contracts

"take it or leave it" contracts

-terms are stated and you cannot negotiate

Unconscionable Adhesion Contracts

Something in contract is crazy unfair but I had to agree