1. Contract Law: Genuine Agreement Objective 3.01 Understand requirements of each element of a contract

2. Genuine Agreement A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree

3. Mistake Unilateral Mistake – An error on the part of one of the parties – Cannot get out of contract – Types: Nature of the Agreement – Signing a contract you don’t understand or have not read – This applies to signing a contract in a language you don’t understand Identity of a Party – Bound by contract with face to face meetings – May be able to void a contract made NOT face to face

4. Bilateral Mistake (Mutual Mistake) – Both parties are mistaken – Types: Possibility of Performance – Contract is impossible to perform Either party can void contract Subject Matter – Either party can void contract Mistake

5. Fraud Deliberate deception for an unfair or unlawful gain – Define each word in bold Deliberate Deception Gain

6. Fraud Definitions Deliberate: Done with or marked by full consciousness of the nature and effects; intentional Deception: The fact or state of being deceived Gain: To secure as profit or reward In order to prove fraud, you must prove the above 3 definitions

7. Proving Fraud: False Representation of Fact 1. Must be a material (important) fact 2. Concealment (nondisclosure) may be considered false representation 1. Representation Known to be False 2. False Representation Intended to be Relied Upon 3. False Representation Actually Relied Upon 4. Resulting Loss

8. Innocent Misrepresentation Make an innocent statement of supposed fact that turns out to be false Injured party has the right to rescind (take back) the offer No rights to damages

9. Duress Overcoming a person’s will by use of force or by threat of force or bodily harm Economic Duress – Threats to a person’s business or income Actual physical harm will void the contract Threat of physical harm will make contract voidable A threat of exercising one’s legal right is NOT duress Ex: Threatening to sue someone and you have right to sue, is NOT duress

10. Undue Influence Unfair and improper persuasive pressure within a relationship of trust

11. Match the column on left with who they have undue influence over in the right column? 1. Doctor 2. Lawyer 3. Parents 4. Teacher A. Student B. Children C. Client D. Patient

12. Match the column on left with who they have undue influence over in the right column? 1. Doctor 2. Lawyer 3. Parents 4. Teacher A. Student B. Children C. Client D. Patient Answers: 1-D, 2-C, 3-B, 4-A