Term
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Definition
| wrongful or unlawful act or threat that overcomes the free will of a party |
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Term
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Definition
| type of duress. forcing someone to sign a contract. makes contract invalid (void) |
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Term
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Definition
| type of duress. use of improper threats or acts, including economic and social cercion to compel a person to enter into a contract. |
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Term
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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. |
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Term
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Definition
| Deceiving the signee. Make the signee think they are signing something else. |
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Term
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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. |
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Term
| Negligent Misrepresentation |
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Definition
| misrepresentation made without due care in ascertaining its truthfulness; renders agreement voidable |
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Term
| Innocent Misrepresentation |
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Definition
| misrepresentation made without knowledge of its falsity but with due care; renders contract voidable |
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Term
| Elements of Fraud in the inducement |
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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. |
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Term
| Nonfraudulent Misrepresentation |
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Definition
| includes negligent misrepresentation and innocent misrepresentation. Doesn't include any elements of fraudulent misrepresentation. |
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