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