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Duress and Undue Influence

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					Genuine Assent
   Chapter 7
    Genuine Assent
►True  and complete intent
 to enter into a contract

Without it, contracts are
typically voidable
Voidable – if the injured
 party desires, they can
 cancel their obligation
 and get back what they
 have already put in
►Rescission  – when the
 injured/forced party
 cancels their obligation of
 a contract
►Ratification– suggesting
 you intend to be bound by
 contract
          Duress
►Occurs when one party
uses improper threat or
act to obtain a contract

►Creates a VOIDABLE
contract
    Types of Duress
1. Threats of illegal conduct
2. Threats to report crimes
3. Threats to sue
4. Economic threats
   Undue Influence
►Occurs  when one party is
in a position of trust and
wrongfully dominates and
deceives the other party
►VOIDABLE   by the victim
     Mistake,
Misrepresentation
     & Fraud
  Unilateral Mistake
►Occurs  when only one
party holds an incorrect
belief about the facts of
a contract
Mutual (bilateral) Mistake
►Both  parties have an
 incorrect belief about an
 important fact of a contract
►Also known as “Mutual
 Mistake”
►Contract is VOID
Material Facts are the
 important facts that
 influence a persons
 decision to enter into a
 contract
Two types of Misrepresentation
►Innocent  Misrepresentation
 (involuntary)

►Fraudulent    Misrepresentation
 (voluntary)
Requirements of Misrepresentation

1.   Untrue statement is one of
     fact or active concealment
2.   Statement is material to the
     transaction
3.   Victim reasonably relied on
     statement
            Fraud
►Based   on misrepresentation
►Must   be proven to show…
 All elements of misrepresentation
 Intent
 Injury
   Remedies for Fraud
►Rescission   (cancel the contract)
►Damages
  Recovery from loss

►Punitive   Damages
  Forms of punishment (above and
   beyond recovery from loss)

				
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posted:7/22/2012
language:English
pages:15