CHAPTER 16: CONTRACTUAL CAPACITY AND GENUINE ASSENT

Learning Objectives: Incapacity to Contract  Types of Incapacity  Case of Minors Genuine Assent  Mistake  Misrepresentation  Other Grounds Chapter 162 CHAPTER 16: CONTRACTUAL CAPACITY AND GENUINE ASSENT

1.Types of Incapacity 2. Case of Minors a.Minors’ Contracts: Voidable b.Right to Disaffirm c.Ratification d.Liability for Necessaries e.Third-Party Rights Chapter 163 INCAPACITY TO CONTRACT

1.Nature of the Concept 2.Categories: a.Mistake Chapter 164 GENUINE ASSENT

i.Definition: a state of mind that is inconsistent with reality. ii.Concept of Materiality iii.Reformation vs. Avoidance iv.Nature of Factual Mistake Chapter 165 Mistake

… v.Bilateral Mistake: I.Def: all parties make the same mistake II.When relief is appropriate vi.Unilateral Mistake: I.Def: only one party makes mistake. II.When relief is appropriate vii.Reformation of Written Contracts Chapter 166 Mistake (cont.)

1.Nature of the Concept 2.Categories: a.Mistake b.Misrepresentation Chapter 167 GENUINE ASSENT

i.Types of Misrepresentation I.Intentional (Fraud) II.Unintentional ii.Fraud I.Nature II.Elements Chapter 168 Misrepresentation

1.Scienter (or Intent to Mislead) 2.False Representation a.Fact b.Opinion c.Silence 3.Justifiable Reliance 4.Damage Chapter 169 Elements of Fraud

1.Nature of the Concept 2.Categories: a.Mistake b.Misrepresentation c.Undue Influence and Duress Chapter 1610 GENUINE ASSENT

CHAPTER 16: CONTRACTUAL CAPACITY AND GENUINE ASSENT