Business Law Ch 17

A contract created by a party to an agreement that is presented to the other party on a take-itor- leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party’s free will to enter a contract.

The active hiding of the truth about a material fact.

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.

(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. Also called intentional misrepresentation.

A false statement made about a material fact by a person who believed the statement was true.

(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. Also called intentional misrepresentation.

A promise to buy or sell that the courts will require that the parties obey.

An untruthful assertion by one of the parties about a material 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.

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

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.

The failure to provide pertinent information about a projected contract.

To cancel a contract.

Deliberately or knowingly.

Grounds for rescinding an unconscionable contract.

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.

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.

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