“Slides with answers will be online for review” Chapter 8 Test Review “Slides with answers will be online for review”

Genuine Assent (Genuine Agreement or Mutual Agreement) “I am what is missing due to fraud, misrepresentation, duress or some sort of mistake occurring” Genuine Assent (Genuine Agreement or Mutual Agreement)

“The key element needed to prove this is relying on a false statement to make a decision” Misrepresentation

Voidable (Only the injured party can rescind) “Any contract that lacks Genuine agreement makes the contact this” Voidable (Only the injured party can rescind)

Undue Influence (A form of Duress) “This is proven based on having a relationship with a person and being unfairly persuaded” Undue Influence (A form of Duress)

Intent to deceive and Intent to injure “These are the elements needed beyond misrepresentation to prove a case of fraud” Intent to deceive and Intent to injure

“This cannot be threatened unless the party making the threat is serious” Threat to sue a person

Ratification (Agreeing to contract) “All rescission must occur before this happens” Ratification (Agreeing to contract)

“Any time one party uses an improper threat or act to obtain an agreement” Duress

Actively concealing something (Hiding it from buyer) “The first element needed to prove misrepresentation is an untrue statement of fact or this” Actively concealing something (Hiding it from buyer)

“This type of damage is meant to compensate a person for what they lost” Compensatory

“This type of damage is meant to punish a defendant in a civil case” Punitive (Fraud can ask for rescission, compensatory or punitive Damages

“This is the only remedy available in a case of misrepresentation” Rescission

Bilateral Mistake (Also known as mutual mistake) “This type of mistake makes the contract void” Bilateral Mistake (Also known as mutual mistake)

“If terminating a contract ends it, this means the contract never existed” Void

“This is the only party allowed to rescind for a unilateral mistake” The Injured Party

Induced Unilateral Mistake “This type of unilateral mistake means the uninjured party knew of the mistake and tricked the injured party into making a mistake” Induced Unilateral Mistake

“These are the 2 types of misrepresentation” Innocent Misrepresentation and Fraudulent Misrepresentation. (Innocent means you didn’t know you were lying and fraudulent means you knew without intent to inure other party)

“Anything that is important to either party in a contract situation” Material

“This is conduct suggesting you intend to be bound by a contract” Ratification

“You have a responsibility to report this, which is why if you threaten someone using this, its duress” A criminal Act

21. “These are the 4 types of duress that can occur, other than Undue Influence” Threat to report a crime, commit a crime, economic threat or threat to sue

22. “These types of mistakes cannot all be voided” Unilateral

23. “Frontier high school posts online that all varsity jackets will sell for $65 and come with a name patch on it and Hank is happy, as he thought he would need to pay more for the patch. When he comes to school to buy his jacket and brings his $65, he learns the patch costs and additional $25. Can Hank claim this was misrep or fraud or can Frontier claim this is nothing but a simple mistake and still charge Hank $25?” This is Innocent Misrepresentation, as it was posted (Communicated) and unless proof if found it was done unpurpose, Hank can claim to get the patch for free

24. “Stanley goes to BlueMart to buy some diet pop, as he is trying to get in shape for Ping Pong season. After he gets home, he realizes he accidently purchased regular pop. Can he do anything legally?” This is a Unilateral Mistake, unless the regular pop was accidently stocked into the diet section or put there by another customer, then it would be “possibly” a bilateral mistake. If unilateral, Stanley might be stuck, unless the store fixes the problem. If Bilateral, the agreement would be void and he would get his money back.

Questions??