1. 7-1 Duress and Undue Influence
GOALS
Recognize when genuine assent is not present
Identify the two key elements in undue influence
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2. GENUINE ASSENT
When two parties make a valid offer and acceptance, there is said to be a “meeting of the minds”--that is, each fully understands the terms of the agreement and agrees with it. We call this
Genuine assent
Genuine agreement
Mutual assent
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3. GENUINE ASSENT
If there is no genuine assent because one party is taking advantage of the other, the contract may not be valid.
Valid - enforceable by both or either party in court.
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4. Genuine Assent Void - not enforceable by either party in court.
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5. Genuine Assent
Voidable - enforceable by only one of the parties - the one who was wronged. The wronged party has the choice to
Rescind (rescission) or disaffirm- back out of the transaction.
Ratify- agree to be bound by the contract.
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6. Genuine Assent
There are four types of contracts which may not have genuine assent. These are generally voidable.
Duress
Undue Influence
Fraud
Mistake (these may be valid, void, or voidable)
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7. GENUINE ASSENT AND DURESS
Coercion involved in agreement
Not duress if the threat is something the person has a legal right to do
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8. GENUINE ASSENT AND DURESS
Threats of illegal or tortious conduct
Threats to report crimes
Threats to sue
Economic threats
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9. List the various forms of legal duress.
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10. UNDUE INFLUENCE AND ASSENT
Usually involves a relationship of trust
One party wrongfully dominates the other party to take unfair advantage in a contract
Needs trusting relationship and unfair persuasion to be undue influence
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11. What are the key elements in undue influence?
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