Minority Defense

§ 14

-Voidable K'l duties until day before (or day after 18th birthday, courts disagree)

-Minor can choose to void K duties

-Cannot void Ks for necessities

-If minor was tortious, can void

-Modern tradition: if benefit is received, have to return what you still have

Mental Incapacity

§15

-Voidable K'd Duties if pass Cognitive/Volitional Test

-Cognitive Test: unable to understand consequences of the transX at the time it was entered into

-Volitional test: Other party knew or had reason to know of condition

-§ 13: If under guardianship, pass the test

Intoxication Defense

§ 16

Voluntary intox - never

Involuntary - Fugue state (excusable)

Volitional test: other had reason to know of your condition

Duress by Physical Compulsion

§ 174

Physically forced to sign a K 

Effect: VOID

*If by 3rd party, other party to K had to know 3rd party induced

Duress by Verbal/Economic Threat

§ 175

Economic: VOIDABLE by wrongful threat (§ 176)

*If 3rd party made the threat, other party to K had to know that the 3rd party induces

Undue Influence

§ 177

Undue Susceptibility

-Total weakness, lesser weakness, even lessor weakness

Domination 

Look at factual triggers

Exceptions:

-Equity and fairness (sm fry v. lg fry, social pressure)

-3rd Party --> Voidable unless other party acted in GF and had no reason to know

Misrepresentation

§ 159

164: Fraud in the inducement (Fraud or mistake,  that is mat'l, which induces assent & justified reliance)

166: Fraud in the execution (inducement leading of MA as to the contents or effect of a writing

Duty to Disclose: replaces above

Unconscionability

208

VOIDABLE

Procedural (K of adhesion, gross inequality or bargaining

Substantive (consideration: adequacy thereof, fairness

Public Policy: 

Mutual Mistake

152

Mistake at the time K was made

as to basic assumption

w/ material effect

Unless: assumed the risk

Mistake by 1 party

at time of K

as to basic assumption

w/ material effect to mistaken party

unless he had reason to know or was responsible (Wilfred Case)

Impracticability

261

-After K made

-event occurs/does not occur

-that was basic assumption on which K was made

-even occurred w/o fault of parties

Effect: duty is discharged

Unless risk was assumed

Impossibility

262

263

Extreme form of impracticability

very hard to meet

i.e. death of a party

Frustration of Purpose

265

-After K was made

-even occurs/does not occur

by no fault of parties

-Discharge of duties

-unless risk assumed

*Principle purpose of K was undermined

Modification

73: Pre-existing Duty Rule

2-209

K must be executory

fair and equitable in circumstances not anticipated by parties at time K was made

CL: need consideration

UCC: need no consideration