Details

Title: Business Law (S and R) ed. 14

Description: chapter 11

Total Flash Cards: 10

Created: 05/03/2009 05:07:33

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Additional Law Flashcards

Cards in this set:

Term
Duress
 Definition
wrongful or unlawful act or threat that overcomes the free will of a party
Term
Physical Force
 Definition
type of duress. forcing someone to sign a contract. makes contract invalid (void)
Term
Wrongful Threats
 Definition
type of duress. use of improper threats or acts, including economic and social cercion to compel a person to enter into a contract.
Term
Undue Influence
 Definition
"unfair" influence - two people who have some sort of relationship (parent/child, spouse/spouse, attorney/client) enter a contract. The contract is disadvantageous to the submissive party, and advantageous to the dominant party, and is therefore voidable by a court of law.
Term
Fraud in the Execution
 Definition
Deceiving the signee. Make the signee think they are signing something else.
Term
Fraud in the Inducement
 Definition
Deceitful, misrepresentation of fact to influence a transaction. Ex. I tell Bob my car was driven by Tom Cruise so that Bob will pay a higher price for the car.
Term
Negligent Misrepresentation
 Definition
misrepresentation made without due care in ascertaining its truthfulness; renders agreement voidable
Term
Innocent Misrepresentation
 Definition
misrepresentation made without knowledge of its falsity but with due care; renders contract voidable
Term
Elements of Fraud in the inducement
 Definition
false representation - positive statement or conduct that misleads
Fact - an event that occurred or thing that exists
Materiality - of substantial importance
Knowledge of Falsity and Intention to Deceive - called scienter and includes actual knowledge, lack of belief in statement's truthfulness, or reckless indifference to its truthfulness.
Justifiable Reliance - a defrauded party is reasonably influenced by the misrepresentation.
Term
Nonfraudulent Misrepresentation
 Definition
includes negligent misrepresentation and innocent misrepresentation. Doesn't include any elements of fraudulent misrepresentation.