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ES 2.00 UNDERSTAND CONTRACT LAW

ES 2.00 UNDERSTAND CONTRACT LAW. Obj. 2.01 Understand the elements and characteristics of a contract 2.01 B Genuine Agreement. GENUINE AGREEMENT (ASSENT). A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree

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ES 2.00 UNDERSTAND CONTRACT LAW

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  1. ES 2.00 UNDERSTAND CONTRACT LAW Obj. 2.01 Understand the elements and characteristics of a contract 2.01 B Genuine Agreement

  2. GENUINE AGREEMENT (ASSENT) A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree Several causes for genuine agreement to be lacking in a contract Duress Undue Influence Unilateral or Mutual Mistake Innocent Misrepresentation Fraudulent Misrepresentation

  3. Overcoming a person’s free will by use of force or by threat of force or bodily harm • Threats of Illegal Conduct • Threats to Report Crimes • Threats to Sue • Threats to sue made for purpose unrelated to the suit • Economic Duress • Threats to a person’s business or income Duress

  4. Unfair and improper persuasive pressure within a relationship of trust • Must be able to prove: • Relationship of trust, confidence or authority • Unfair persuasion Undue Influence

  5. An error on the part of one of the parties • Does not affect validity of the contract • Cannot get out of contract • Nature of the Agreement • Signing a contract you don’t understand or have not read • Signing a contract in a language you don’t understand Unilateral Mistake

  6. Both parties are mistaken about an important fact • Impossibility of Performance • Contract is impossible to perform • Contract is void • Subject Matter • Either party can void contract • Existing Law • Contract is valid • Parties are expected to know the law Mutual Mistake (Bilateral Mistake)

  7. Innocent statement of supposed fact that turns out to be false • Statement must be one of fact • Statement must be material • Statement must be relied upon • Injured party has the right to rescind (take back) the offer • No rights to damages Innocent Misrepresentation

  8. Party to a contract deliberately makes an untrue statement of fact • Deliberate: Done with or marked by full consciousness of the nature and effects; intentional • Deception: The fact or state of being deceived • Gain: To secure as profit or reward • In order to prove fraud, you must prove the above 3 definitions Fraudulent Misrepresentation

  9. Untrue statement of fact • Must be one of fact, not opinion • Active concealment • Silence – may stay silent about defects except when: • statement is about material facts • True statement is made false by subsequent events • One party knows the other party has made a basic mistaken assumption • Materiality • Statement would cause reasonable person to contract • If one party knows the other party would rely on the statement • If one party knows the statement is false Proving Fraudulent Misrepresentation

  10. Reasonable Reliance • One party must reasonable rely on statement • Intentional or reckless • One party deliberately lies or conceals a material fact • One party recklessly makes a false statement of fact, without knowing whether it is true or false • Statement must be intended to induce party to enter into contract • Resulting Loss • Must cause an injury Proving Fraudulent Misrepresentation

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