Term
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Definition
Ability to understand that a contract is being made and to understand its general meaning.
(factual and temporary incapacity can void contract) |
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Term
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Definition
Temporary or permanent: mental condition caused by medications, alcohol, illness, age. A person does not understand that a contract is being made.
Ex: getting a tattoo when drunk. |
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Term
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Definition
(Status Incapacity) Law protects classes by keeping them out of unwise contracts
Most important class today is minors. |
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Term
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Definition
Under age 18. Lacks contractual capacity. Making contracts voidable. At election of the minor, minor may affirm or ratify contract on attaining majority at the election of the minor.
Minors must pay reasonable value for necessaries |
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Definition
| A minor may disaffirm a contract by any expression of intention to revoke a contract. |
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Term
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Definition
Misrepresenting Minors: (Fake ID) guilty of fraud. A misrepresentation still means a minor can disaffirm a contract.
Innocent Minor: doesn't have to make restitution
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Term
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Definition
| Things indispensable or absolutely necessary for the sustenance of human life. Includes things related to health, education, and comfort for minors. Minors are liable for necessaries like medical bills. |
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Term
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Definition
If you enter into a K during minority and stay in it after majority then it becomes ratified.
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Term
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Definition
Both parties enter into a K under mutually mistaken understanding concerning a basic assumption of fact or law.
Voidable by the adversely affected party if mistake has a material effect on the agreed exchange. |
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Term
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Definition
| A mistake by only ONE of the parties |
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Term
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Definition
1. Mutual Mistake of Fact - Recession-->Yes
2. Unilateral Mistake of Fact - Recession -->No
3. Mutual Mistake of Law - Recession -->Maybe
4. Unilateral Mistake of Law - Recession -->No |
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Term
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Definition
Making of a material mispresentation of Fact with:
1.Knowledge of falicity
2. Intent that listener relies on it
3. Result that listener DOES rely on it
4. Consequence that listener was harmed.
Fraud utilizes subjective intent. You have to be injured. |
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Term
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Definition
1.Crime
2.Tort
3.Defense to formation of genuine Assent |
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Term
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Definition
Agreeing to the contract that was made.
3 ways assent can be FALSE:
1.Fraud
2.Duress
3.Undo-Influence |
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Term
| Confidential Relationship |
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Definition
Full confidence in ONE.
Failure to disclose information may be regarded as fraudulent. |
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Term
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Definition
Serves to make K voidable, especially when deal with active concealment
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Term
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Definition
Whether it is important or not.
Subjective test!
ex: saying there is low mileage on a car. |
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Term
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Definition
That which is OBVIOUS
That which is NOT obvious
(have obligation to disclose it, or its fraud)
(Latent, you have to Look) |
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Term
Fraud in the FACTUM
Fraud in the ESSENCE |
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Definition
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Term
Fraud in the PERSONEUM
Fraud in the INDUCEMENT |
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Definition
VOIDABLE
Getting you to do it. More common transactions. VOIDABLE |
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Term
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Definition
| Fraud without intent. Makes contract voidable. |
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Term
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Definition
| Conduct that deprives the victim of FREE WILL. Entered into to avoid danger. Requires the element of COERCION and no relationship can be physical, financial, economic, psychological pressure. |
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Term
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Definition
| Takes place under fiduciary relationship (trust relationship). Person making K does NOT exercise free will. You can be competent but still be subject to undue influence. Comes from a relationship. |
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Term
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Definition
| Having legal rights taken away. Once they are gone you can't get them back until you go before a judge again. Can't enter into a contract. Judge places guardian in charge of a person. |
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