Business Law Chapter 7 Genuine Assent

Genuine Assent

true consent

With out genuine assent

Contract is VOIDABLE!

Duress (Sit. when assent is lacking)

improper threat or act to gain agreement
(threats to illegal conduct, threat to report crimes, threat to sue, Economic threats)

Undue influence (Sit. when assent is lacking)

one party is in a position of trust & wrongfully dominates the other party using unfair persuasion to overcome their free will (Relationship & unfair persuasion)

Unilateral Mistake (Sit. when assent is lacking)

one party holds an incorrect belief about some fact related to a contract; contract is still enforcable EX. signing contract in another language

Bilateral Mistake (Sit. when assent is lacking)

both parties have am incorrect belief about some important or material fact related to a contract... Contract is VOID!

Misrepresentation (Sit. when assent is lacking)

reliance on an untrue statement of fact material to the transaction

Innocent Misrepresentation

a seller of a car is unaware that a previous owner replaced an odometer on the car; any contract is voidable by an injured party

Fraudulent misrepresentation

a seller of a car knows a previous owner replaced the odometer but intentually deceives the buyer; voidable by an injured party

Fraud

recklessly concealing a material fact in order to induce the victim to contract; must be proof of an injury

Rescission (Remedies for Fraud)

contracts entered into as a result of misrep. are voidable by the injured party

Damages (Remedies for Fraud)

for loss created by the fraud

Punative Damages (Remedies for Fraud)

to punish the party committing the fraud