BLAW CHAPTER 15 - EXAM 2

voluntary consent

The knowing and voluntary agreement to the terms of a contract. If voluntary consent is lacking, and the contract will be voidable.

adhesion contracts

a standard-from contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms

If Ramona changes her will at age 88 to leave the bulk of her fortune to her home health care nurse instead of her children, what factor will the courts consider in judging whether or not her will is valid?

undue influence

What factors must be present to prove fraudulent misrepresentation in a contract? Choose 3 answers.

-the innocent party has justifiably relied on the misrepresentation -there has been an intent to decieve -a misrepresentation of a material fact has occured

negligent misrepresentation

Any manifestation through words or conduct that amounts to an untrue statement of fact made in circumstances in which a reasonable and prudent person would not have done (or failed to do) that which led to the misrepresentation. A representation made with an honest belief in its truth may still be negligent due to (1) a lack of reasonable care in ascertaining the facts, (2) the manner of expression, or (3) the absence of the skill or competence required by a particular business or profession.

latent defects

a defect that is not obvious or cannot readily be ascertained

innocent misrepresentation

a false statement of fact or an act made in good faith that deceives and causes harm or injury to another

bilateral mistake

a mistake that occurs when both parties to a contract are mistaken about the same material fact

unilateral mistake

a mistake that occurs when one party to a contract is mistaken as to a material fact

which mistake is likely to be voidable?

bilateral mistake

Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called:

duress

scienter

knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive

Will a mistake in value of the subject of the contract allow a contract to be rescinded?

no, even if both parties were mistaken

undue influence

persuasion that is less than actual force but more than advice and that induces a person to act according to the will or purposes of the dominating party

What is the result of a contract in which both parties are wrong about a material fact of the contract?

the contract is voidable