Genuine Assent


Recognize when genuine assent is not present.
Identify the two key elements in undue
influence.

Genuine Assent: a true and complete
agreement. It is an agreement to enter into a
contract that is evidenced by words or conduct
between the parties.


Voidable: Occurs when an injured party
cancels the contractual obligation
Rescission: When the injured party tries to get
back what has already been put into the
contract.
RATIFICATION:

Conduct of all parties
that confirm they intent
to be bound by the
contract.
DURESS:

Occurs only when on
party uses an improper
threat or act to obtain an
expression of a contract.

Undue Influence: When one party to the
contract is in a position of trust and wrongfully
dominated the other party.


Unilateral Mistakes: Occurs when only one
party holds an incorrect belief about the facts
or law related to the contract.
Mutual Mistake: (bilateral mistake): Occurs
when both parties have an incorrect belief
about an important fact (voidable), or the
applicable law (not voidable)


Material Facts: facts that influence the parties’
decisions about the contract.
Void: When something is without legal effect.



Innocent misrepresentation: Occurs when a
party, during the negotiations, makes a
statement that turns out to be untrue.
Fraudulent misrepresentation: Occurs when a
party knowingly makes a statement that in
untrue.
Active Concealment: A substitute for a false
statement of fact.

1.
2.
3.
There are three important situations where
disclosure is required.
When a statement about a material fact omits
important information.
When a true statement is made false by
subsequent events.
When one party knows the other party has
made a basic mistaken assumption.

1.
2.
3.
There are three ways an untrue statement can
be determined to be material:
If an untrue statement would cause a
reasonable person to contract.
If the defendant knew the plaintiff would rely
on the statement.
If the defendant knew the statement was false.

Reasonable Reliance: Even though the
statement is material. There is no
misrepresentation unless the victim reasonably
relied on it.

Fraud exits: when a person deliberately lies or
conceals a material fact. To establish fraud,
there must be proof of injury.
1.
Rescission: Voiding of the contract by the
injured party. Normally, when you rescind,
anything you received must be returned.
2.
Damages: The defrauded party may seek
damages for the loss created by the fraud.

Punitive Damages: A form of punishment.
These damages are awarded above the amount
of the defrauded party’s original damages to
act as punishment to the party who committed
fraud.