BUSINESS LAW - CHAPTER 12 (Defenses to Contract Enforceability)

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  1. Mistake
    An error in the meaning of words, laws, or facts which causes one or both parties to enter into the contract without fully understanding the outcomes or responsibilities implied by the contract.
  2. Unilateral Mistake
    Occurs when only one party is mistaken as to the subject matter or the terms contained in the contract agreement. ("victim" = screwed / other party = has a case! sue!)
  3. Bilateral Mistake
    When both parties are mistaken as to the subject matter or the terms contained in the contract agreement. (Therefore= No Contract)
  4. Fraud
    the intentional use of deceit, a trick or some dishonest means to deprive another of his/her/its money, property or a legal right.
  5. Scienter
    Latin for "having knowledge." In criminal law, it refers to knowledge by a defendant that his/her acts were illegal or his/her statements were lies and thus fraudulent.
  6. Material (as in Material Fact)
  7. Undue Influence
  8. Duress
    • Unlawful pressure brought to bear
    • on a person, causing the person to perform an act that she or he would not
    • otherwise perform.
  9. Statute of Frauds
    • A state statute that requires
    • certain types of contracts to be in writing to be enforceable.
  10. UCCSF
  11. SWAMP (Exceptions to the UCCSF)
    • Specially manufactured goods
    • Waiver (use it or lose it)
    • Admission (big mouth)
    • Merchant (memo rule)
    • Past performance (cannot deny what is done).
  12. Specially Manufactured Goods
    Custom made products (example: Denver Broncos Champions Superbowl 2014 T-shirt)

    • $ubstantial $teps
    • serious harm if cancel

    Oral Contract goods $500 +
  13. Merchant (Memo Rule)
    Two merchants, one sends a note confirming the deal. The other fails to object within 10 DAYS. Then, the NOTE BECOMES THE CONTRACT.
  14. Surety
    • A third party who agrees to be
    • primarily responsible for the debt of another.
  15. Collateral Promise
    • A secondary promise to a primary
    • transaction, such as a promise made by one person to pay the debts of another
    • if the latter fails to perform. A collateral promise normally must be in
    • writing to be enforceable.
  16. Main Purpose Rule
  17. Parol Evidence Rule
    • A rule of contracts under which a
    • court will not receive into evidence prior or contemporaneous oral statements
    • and agreements that contradict the terms of the parties’ written contract.
  18. Integrated Contract
    • A written contract that
    • constitutes the final expression of the parties’ agreement. Evidence extraneous
    • to the contract that contradicts or alters the meaning of the contract in any
    • way is inadmissible.
Card Set:
BUSINESS LAW - CHAPTER 12 (Defenses to Contract Enforceability)
2014-03-25 20:50:06

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