Legal Terminology Mid-Term (Ch. 17)

fraud

a misrepresentation of a material, existing fact, knowingly made, that causes someone reasonably relying on it to suffer damages. Also called deceit

deceit

a misrepresentation of a material, existing fact, knowingly made, that causes someone reasonably relying on it to suffer damages. Also called fraud

unilateral mistake

a mistake made by only one party to a contract

e-signature

abbreviation for electronic signature, a method of signing an electronic message that identifies the sender and signifies his or her approval of the messages content

consideration

an exchange of benefits and detriments by the parties to an agreement

affirm

approve

rescind

cancel

rescission

cancellation

mutual mistake

when both parties are mistake about an important aspect of an agreement. Also called bilateral mistake

bilateral mistake

when both parties are mistaken about an important aspect of an agreement. Also called mutual mistake

exculpatory clause

a clause that is used in a contract to escape legal responsibility

adhesion contract

a contract that is drawn by one party to that party's benefit and must be accepted, as is, on a take-it-or-leave-it basis if a contract is to result.

lack of consideration

a defense available to a party being sued when no consideration is contained in the agreement that is sued on

failure of consideration

a defense available when the consideration provided for in an agreement is not in fact given to the party being sued

promissory estoppel

a doctrine under which no consideration is necessary when someone makes a promise that induces another's action or forbearance, and injustice can be avoided only by enforcing the promise

seal

a mark, impression, the word "seal', or the letters L.S. placed on a written contract next to a party's signature

firm offer

a merchant's written promise to hold an offer open for the sale of goods

nundum pactum

a barren promise with no consideration

option contract

a binding promise to hold an offer open

statute of frauds

certain contracts must be in writing to be enforceable

fraud in esse contractus

fraud as to the essential nature of the transaction

fraud in the inducement

fraud that induces another to enter into a contract

in pari delicto

in equal fault

promisee

one to whom a promise is made

promisor

one who makes a promise

parol evidence rule

oral evidence of prior or contemporaneous negotiations between the parties is not admissible in court to alter, vary, or contradict the terms of a written agreement

locus sigilli

place of the seal

locus

place; locality

forbearance

refraining from taking action

unconscionable

so harshly one-sided and unfair that the court's conscience is shocked

boilerplate

standard language used commonly in documents of the same type

usury

the charging of a greater amount of interest than is allowed by law

detriment

the giving up of a legal right

undue influence

the overcoming of a person's free will by misusing a position of trust and taking advantage of the other person who is relying on the trust relationship

duress

the overcoming of a person's free will by the use of threat or physical harm

memorandum

the writing that is necessary to satisfy the statute of frauds

avoid

to annul, cancel, or make void. To get out of a voidable contract, repudiate. Also called disaffirm