Mistakes, Fraud, and Voluntary Consent

Flashcards on Mistakes, Fraud, and Voluntary Consent in Contract Law

Voluntary consent

Knowing and voluntary agreement to the terms of a contract.

Voidable

A contract will be considered this if voluntary consent is lacking.

Mistake of fact

A mistake that must be present for a contract to be voidable.

Unilateral mistake

A mistake that occurs when one party to a contract is mistaken as to a material fact.

Bilateral mistake

A mistake that occurs when both parties to a contract are mistaken about the same material fact

Rescind

To cancel a contract.

Mistake of value

Concerns the future market value or quality of the object of the contract; normally enforceable.

Fraudulent Misrepresentation

An innocent party is fraudulently induced to enter into a contract; the contract can usually be avoided.

Actions

A misrepresentation of a material fact can occur by words or _.

Misrepresentation by Conduct

Occurs when a party takes specific action to conceal a fact that is material to the contract.

Latent defect

A defect that is not obvious or cannot readily be ascertained.

Scienter

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.

Innocent misrepresentation

A false statement of fact or an act made in good faith that deceives and causes harm or injury to another.

Negligent misrepresentation

Any manifestation through words or conduct that amounts to an untrue statement of fact made in circumstances in which a reasonable and prudent person would not have done that which led to the misrepresentation.

Undue influence

Persuasion that is less than actual force but more than advice and that induces a person to act according to the will or purposes of the dominating party.

Duress

Unlawful pressure brought to bear on a person, causing the person to perform an act that he or she would not otherwise perform.

Adhesion contract

A “standard-form” contract in which the stronger party dictates the terms.