Presentation on theme: "Chapter 8 in the business law text"— Presentation transcript:
1 Chapter 8 in the business law text Genuine AgreementChapter 8 in the business law text
2 “Meeting of the Minds”Offeror and offeree must both agree on the contractual terms.If there is no “meeting of the minds” there is no contract
3 Mistakeunilateral mistakebilateral, or mutual, mistake
4 Unilateral Mistakean error on the part of one of the parties to the contractThis ordinarily does not make the contract voidable.Types of unilateral mistakeas to the nature of the agreementas to the identity of a party
5 Bilateral Mistakean error on the part of both (or all) of the parties to the contractThis makes the contract voidable by either party.Types of bilateral mistakeas to the possibility of performanceas to the subject matter
6 Fraud (deceit)deliberate deception to secure an unfair or unlawful gainPersons induced into a contract by fraud have a choice.rescind, or cancel the contractsue for monetary damages
7 Fraud - the five elements false representation of factparty making the representation must know it’s falserepresentation made with the intent it be relied uponreasonable reliance by innocent party on the representationmonetary loss
8 Innocent Misrepresentation representation which turns out to be false but which was believed to be true at the time it was madeThe other party may rescind the contract but may not sue for monetary damages.
9 Duressovercoming a person’s will be use of force or by threat of force or bodily harmIf actual force is used, the contract is void.If the threat of force is used, the contract is voidable by the innocent party.The threat may be to the innocent party or to a family member.
10 Undue Influenceunfair and improper persuasive pressure exercised by one person in a relationship of trust with another personThe contract is voidable by the innocent party.