Term
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Definition
- Mistake of fact
- Mistake of value or quality
ONLY a mistake of FACT may allow a contract to be avoided!!!
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Term
| Two forms of mistake of fact |
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Definition
- Unilateral - Only one party is mistaken about the material fact. Doesn't afford the mistaken party any right to relief from the contract unless the mistake free party should have known that a mistake of fact was made
- Bilateral - Mutual mistake where both parties make a mistake as to the existing material fact.
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Term
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Definition
| Mistake concerning the future market value of quality of the object of the contract. The contract normally is enforceable. |
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Term
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Definition
A contract entered into under excessive or undue influence lacks voluntary consent and is therefore voidable. A relationship exists where one party can greatly influence another party and that party does not exercise free will.
Ex: Elderly-guardian, physician-patient, etc. |
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Term
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Definition
| Forcing a party to do something, including entering into a contract, through fear created by threats. The threatened act must be wrongful or illegal! - Ex: If you don't sign, I'm going to shoot you! |
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Term
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Definition
| When a party exacts a very high price for some needed good or service after creating the need for that good or service. |
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Term
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Definition
| Certain agreements are required by law to be in writing. If there is no written evidence of the contract, it may not be enforceable. This statute makes a contract VOIDABLE, not VOID!! |
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Term
| 5 reasons contracts fall within the Statute of Fraud and require a written contract |
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Definition
- Involves interests in land
- Terms cannot be performed within 1 year from the day after the date of formation.
- Collateral (or cosigner) involved.
- Promises in consideration of marriage. Ex - Prenuptial agreement.
- Sale of goods priced at $500 or more.
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Term
| 4 Exceptions to the applicability of the statute of frauds |
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Definition
- Partial Performance is made on an oral contract
- Admission - Party in court admits to entering into an oral contract.
- Promissory Estoppel - Will be enforced if promisee had detrimental reliance on promisor
- Special Exceptions under the UCC - Oral contracts for customized goods enforced. Oral contracts between merchants confirmed in written memorandum enforced.
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Term
| What constitutes a writing? |
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Definition
Order confirmation, invoice, sales slip, check, fax or e-mail. One document can refer to another and cause binding.
Writing must show that parties voluntarily entered the contract and the terms are understood clearly |
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