Defenses in Contracts

Flashcards covering key concepts and terms related to defenses in contract law.

Legally Enforceable Contract

An agreement requiring an offer, acceptance, exchange of consideration, and lack of defenses.

Consideration

Something of legal value that is exchanged between parties in a contract.

Defenses

Circumstances that make a contract unenforceable, such as fraud, duress, undue influence, or mistake.

Fraud

A misrepresentation of material fact that induces a party to enter into a contract.

Duress

A situation where a party's free will to contract is overcome by threats.

Undue Influence

When a party uses a position of trust to take advantage of another party's weakness.

Mutual Mistake

A circumstance where both parties are mistaken about a material fact of the contract, allowing it to be avoided.

Unilateral Mistake

A mistake made by one party which generally does not invalidate the contract unless the other party knew or should have known.

Illegality

Contracts involving illegal activity are generally unenforceable.

Adjudicated Mental Incompetency

A contract entered into by an adjudicated mentally incompetent person is void.

Statute of Limitations

Laws setting maximum time after an event within which legal proceedings may be initiated.

Statute of Frauds

A legal doctrine requiring certain contracts to be in writing to be enforceable.

Specific Performance

A legal remedy where the court orders the breaching party to perform their contractual duties.

Liquidated Damages

A predetermined amount of money that the parties agree will serve as compensation in the event of a breach.

Rescission

A remedy that cancels the contract, returning parties to their original positions before the contract.

Accord and Satisfaction

An agreement to accept different performance than originally agreed upon, discharging the original obligation.

Novation

The substitution of a new contract or party for an original one, with all parties agreeing.