Details Title: Business Law (S and R) ed. 14 Description: chapter 11 Total Flash Cards: 10 Created: 05/03/2009 05:07:33		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. 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.