Term
| Two parties that have the defense that they lack capacity |
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Definition
1) Minors
2) Adjudicated Insane |
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Term
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Definition
The mental ability to enter into a contract.
Does not mean they understand the K, just that they understand they are signing a legal obligation |
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Term
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Definition
Non compos mentis
Void
Court declared you insane
Given a guardian to handle legal obligations |
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Term
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Definition
Voidable--you can get out of it but you still need to pay for damages
-Prove you lacked capacity
-Succeed:return and pay damages |
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Term
| Who has the burden of proof |
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Definition
The insane person if they want to get out of it
The sane person if they want to get out of it |
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Term
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Definition
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Term
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Definition
Choosing to get out of the K
(minors) |
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Term
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Definition
| If the minor does not dissaffirm upon turning 18, K is valid |
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Term
| What are minors liable for? |
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Definition
Nothing.
(generally not for damages or even for returning the goods) |
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Term
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Definition
-Ks in which they lied about their age
-Ks in which they committed a tort
-Ks for necessaries (food, clothing, shelter) |
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Term
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Definition
Usurious K
Gambling K
Sunday K
Licensing K
K to commit a crime
K in restraint of trade
Exculpatory Clauses |
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Term
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Definition
A K that charges an illegal rate of interest
-only apply to commercial loans
-voidable |
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Term
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Definition
Wagers, lotteries, games of CHANCE
--Unenforceable, void
Ks based on skill (stocks)
--Valid, enforceable
(and states that have legalized gambling) |
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Term
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Definition
Some states have statutes that make entering into a K on a Sunday illegal
--Unenforceable, voidable |
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Term
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Definition
License to represent competency (ex: license to practice law)
--Fail to get this: Ks are unenforceable |
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Term
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Definition
License to generate (ex: alcohol license)
--Fail to get this: Ks enforceable |
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Term
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Definition
| Obviously unenforceable, void |
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Term
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Definition
Agreeing that if you leave your job, you will not get another at a similar business and compete against your former employeer
-3 Things to Determine:
1)How long did you agree not to compete
2)How great a geographical area
3)How necessary is it that you dont
--Could be enforceable or unenforceable |
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Term
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Definition
Agreement says that even if the other party was negligent, you agree not to sue.
--NY: places of amusement: unenforceable |
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Term
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Definition
One of the parties can get out of the K by raising this in court
--Voidable |
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Term
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Definition
Unilateral Mistake
Bilateral Mistake
Mistake as to Price/Value
Fraud
Misrepresentation
Duress
Undue Influence
Statute of Limitations
Statute of Frauds
Illegality
Incapacity |
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Term
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Definition
The person receiving the offer knew or should have known there was a mistake
-"Too good to be true!": it is
--Voidable |
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Term
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Definition
Both parties are mistaken about an essential part of the K
-No meeting of the minds
--Voidable |
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Term
| Mistake as to Price/Value |
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Definition
One or more parties mistake about the price of the goods in the K
--Valid, enforceable K |
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Term
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Definition
A knowing lie (while entering into a K)--fact, no opinion
Other party relied on the lie when entering into the K
--Voidable |
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Term
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Definition
Unknowing lie.
One party is asked a question and stated answer w/out checking facts.
Experts have the duty to find out and disclose: if not--negligent
--Voidable |
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Term
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Definition
Threat of physical harm
-Complete defense
--Voidable |
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Term
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Definition
Persuaded by a fiduciary to enter into a K against their best interests. Person is using their position of trust to get "weaker" person into the K.
-Fiduciary is one recognized by law |
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Term
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Definition
Special relationship of trust
Examples:
-doctor
-financial manager
-attorney
-priest |
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Term
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Definition
There is a limited amount of time to bring a lawsuit.
Time defined by law.
Statute of limitations has run out.
-Voidable |
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Term
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Definition
Law states which Ks need to be in writing to be enforceable
-If theyre not in writing.. voidable
3 Ks:
1) K for the SALE OF GOODS over $500
2) K that cannot be completed in a year
3) K for real estate |
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Term
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Definition
One of the 7 illegal Ks
--Voidable |
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Term
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Definition
Ks involving minors or adjudicated insane people who do not have mental capacity.
--Voidable |
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