Chapter 12 Reality of Assent

intentional misrepresentation

A false representation of a material fact made by a party who either knows or believes that the factual claim is false or knows that there is no basis for the assertion. Scienter is clear.

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.

mistake

An erroneous belief about the facts of a contract at the time the contract is concluded. When this occurs, legal assent is absent

fraudulent misrepresentation

a false representation of a material fact that is consciously false and is intended to mislead the other party

innocent misrepresentation

a false statement about a fact material to an agreement that the person who made the statement believed to be true

voidable

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

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

nondisclosure

failure to provide pertinent information about a projected contract

scienter

knowledge. As in, the person had or lacked BLANK.

concealment

the active hiding of the truth about a material fact

mutual mistake

the result of an error by both parties about a material fact, that is, one that is important in the context of a particular contract

unilateral mistake

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

undue influence

the situation in which one person has taken advantage of his or her dominant position in a relationship to persuade the other person unduly to the extent that the dominant person's persuasive efforts have interfered with the other person's ability to make his or her own decision

rescind

to cancel a contract