Business Law Chapter 7-Genuine Assent – Flashcards
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genuine assent
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agreement to enter into a contract that is evidenced by words or conduct between the parties
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voidable
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A contract that one party may void at his option without being a breach of contract.
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rescission
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A legal remedy that voids an existing contract and restores both parties to their situations prior to entering into the contract.
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ratification
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An official approval
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duress
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-A party threaten another, to force him to enter a contract. (ex. air condition in store
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illegal or tortious conduct
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not legal or wrongful.
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forms of legal duress
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illegal or wrongful activity, report crime, economic harm
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undue influence
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using one's influence to pressure a person into making a contract, or taking advantage of another's weakness of mind to induce him to enter a contract
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unilateral mistake
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Error by one of the parties
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mutual mistake
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Mistake about an important fact believed by both parties to a contract
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material facts
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important facts that influence the parties' decisions about a contract
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void
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having no legal effect
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innocent misreprsentation
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party to a contract does not know that a statement he/she made is untrue
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fraudulent misrepresentation
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A false representation of a material fact that is consciously false and is intended to mislead the other party
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fraud
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A deliberate deception intended to secure an unfair or unlawful gain
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elements of misrepresentation
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untrue statement of fact, fact is material, reasonably relied on the statement
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elements of fraud
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untrue statement of fact, fact is material, reasonably relied on the statement, misrepresentation is intentional, misrepresentation must cause injury
