Chapter 17

Mistake of Fact

1. A mistake that is not caused by the neglect of a legal duty by the person committing the mistake but, rather, consists of unconscious ignorance of a past or present material event or circumstance. 2. An affirmative defense in which the defendant tries to prove that she or he made an honest and reasonable mistake that negates the guilty-mind element of a crime

Fraudulent Misrepresentation

1. The tort that occurs when a misrepresentation is made with intent to facilitate personal gain and with the knowledge that it is false. 2. In contracts, a false representation of a material fact that is consciously false and is intended to mislead the other party

Adhesion Contract

A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis

Innocent Misrepresentation

A false statement made about a material fact by a person who believed the statement was true

Negligent Misrepresentation

A false statement of material fact made by a person who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it

Unilateral

A mistake that is the result of an error by one party about a material fact, that is, a fact that is important in the context of the particular contract

Legal Assent

A promise to buy or sell that the courts will require that the parties obey

Voidable

A term applied to a contract that one or both parties have the ability to either withdraw from or enforce

Intentional Misrepresentation

Also known as fraudulent misrepresentation

Misrepresentation

An untruthful assertion by one of the parties about a material fact

Duress

Any unlawful act or threat exercised on a person whereby the person is forced to enter into an agreement or to perform some other act against his or her will

Scienter

Deliberately or knowingly

Unconscionability

Ground for rescinding an unconscionable contract

______ occurs when the party making the false statement claims to have or implies having personal knowledge of its accuracy

Intent to deceive

______ is present when the party making the fraudulent assertion believed it was false or had no regard for whether it was true or false

Scienter

Concealment

The active hiding of the truth about a material fact

Nondisclosure

The failure to provide pertinent information about a projected contract

Mutual

The result of an error by both parties about a material fact

Undue Influence

The situation in which one person takes advantage of his or her dominant position in a relationship to unfairly persuade the other person and interfere with that person's ability to make his or her own decision

Rescind

To cancel a contract