chapter 15 mistake, fraud, and voluntary consent – Flashcards

An otherwise valid contract may be unenforceable if the parties have not genuinely agreed to its terms.

Generally a party who demonstrates that he or she did not truly agree to the terms of a contract does NOT have one of the following choices:

When one party makes a mistake, that party can:

Alicia offers to sell a purebred cat for $200. Neither Alicia nor the buyer discusses the cat's ancestry, but the buyer believes that it comes from a championship line and agrees to the price. Upon discovering that the cat is only worth $50, can the buyer rescind the contract based on her mistake?

Blake purchases a mare from Childs, who says that the mare is healthy and should make a good brood mare when a little older. After two years, the horse has not foaled. A veterinarian tells Blake that the horse is incapable of breeding. If Blake sues to rescind the contract with Childs it is

Even when a unilateral mistake of fact was made, a contract may be enforceable if the other party to the contract knows or should have known that a mistake of fact was made.

As a general rule, a unilateral mistake does not give the mistaken party any right to relief from the contract, except under one of the following situations:

When an innocent party is fraudulently induced to enter into a contract, the contract normally can be avoided because that party has not voluntarily consented to its terms.

When a party is fraudulently induced into a contract, that party can

In the list below, pick out which is NOT an element of fraud.

Misrepresentation by conduct involves:

The law will not come to the aid of one who simply makes an unwise bargain.

Misrepresentation of law ordinarily does not entitle a party to relief from a contract.

Senso offers to sell his car and knows that it has been in an accident. If the purchaser asks Senso if the car has had body work and Senso lies, he will have committed a(n)

Ordinarily, any party to a contract has a duty to come forward and disclose facts that the other party does not know about.

One party's intent to deceive the other party to a contract is known as:

Beatrice sells Claudia an exotic bird that Beatrice knows is on the endangered species list, but tells Claudia that it isn't. When the federal government confiscates the bird and fines her, Claudia sues Beatrice for:

Scienter does NOT exist when

Scienter occurs if a party says or implies that a statement is made on some basis, such as personal knowledge or personal investigation, when it is not.

When an innocent misrepresentation has occurred, the aggrieved party cannot rescind the contract, but usually can seek damages.

A contract entered into under excessive or undue influence lacks voluntary consent and is therefore voidable.

If a contract enriches the dominant party, the courts will often___________________ undue influence.

Jed tells his ailing mother that unless she lends him money for a business investment he will never see her again. She agrees but later changes her mind and asks for her money back. Jed claims that they have formed a binding contract. Why might the contract be voidable?

Economic need is usually sufficient to constitute duress.