Physical Capacity
you must be of legal age
Mental Capacity
A) Intoxication: having an inability to truly understand the situation at handB) Mental Disease: This is also essentially interferes the individual's understanding of the contract, making it voidable.
Duress
Physical duress, Economic Duress
Undue Influence
a professor who cannot have a personal relationship with his student because of the conflict of interest between the grading and the relationship and there would be an example
Fraud
A) in the Inducement: you are intentionally deceiving someone to bring them to the point to signing the contract.B) in the execution-the fraud is in the actual signing of the contract. The signor thinks he is signing an autograph and then things are written on it later, thus deceiving the guy into signing a contract.
Misrepresentation
like fraud but in either a negligent or innocent way
Mistake
Unilateral: one side makes a mistake (chairs)Mutual : this is when both sides are making a mistake
Illegality
if the subject matter is illegal then the contract is void.
Unconscionability
a contract that is SUPER unfair***
***Declare whole contract void
Problem is this is that there might be good stuff in there, why throw out good with bad
***Take the bad and throw it out and keep the rest
Problem is what you are throwing out might be guts of contract, may not having anything important left. Contract might say cant divide me, either it all stays or all goes.
***FAVORED APPROACH for unconstitutionality
Take part that was unconscionable (bad) and scale it back so that it becomes conscionable (okay). EX: Take interest rate and roll it back so its now within allowed interest rate.
The Statute Of Frauds
The idea is that certain kinds of contracts need to be in writing because if they weren't, there would be too much potential for fraud.
Statute of Limitation
the time from within which a lawsuit must be commenced. For a contract, the time frame is 6 years. If the plaintiff waits more than 6 years, the defendant has a great defense.