BLAW Chapter 14

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BLAW Chapter 14
2010-04-08 21:21:54
Business Law Chapter 14

Chapter 14 Vocab/Definitions
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  1. involuntary promises (3)
    fraud and misrepresentation, difference between duress and undue influence, difference between mutual mistake of fact and a unilateral mistake of fact
  2. fraud
    intentional misrepresentation of the material fact made for the purpose of educing the other party to surrender a legal right
  3. misrepresentation
    an innocent misrepresentation of a material fact justifiably relied upon is grounds for holding the contractual promise voidable
  4. what is not a misrepresentation
    a prediction/opinion of what might happen in the future
  5. due diligence
    encourages you to lie
  6. remedy
    rescission of the contract or keep the contract and sue for damages
  7. undue influence
    weak individual comes across a strong/intelligent person ; remedy available to the elderly, the mentally retarded and the incompetent
  8. peerless case
    meeting of the minds with acceptance of the offer
  9. 3 types of mutual mistake of fact
    • (1) contract is ambiguous and subject to two different interpretations
    • (2) both parties assume that a fact doesn't exist when it does
    • (3) both parties assume that a material fact exists when it does not
  10. unilateral mistake of fact
    only one party has a misunderstanding