Chapter 11 Defenses to Contract Enforceability

1 / 7
About This Presentation
Title:

Chapter 11 Defenses to Contract Enforceability

Description:

What is the difference between a mistake of law and mistake of fact? ... Threat of physical force or extortion. Can serve as basis for rescission of contract. ... – PowerPoint PPT presentation

Number of Views:87
Avg rating:3.0/5.0
Slides: 8
Provided by: joezav

less

Transcript and Presenter's Notes

Title: Chapter 11 Defenses to Contract Enforceability


1
Chapter 11Defenses to Contract Enforceability
2
Learning Objectives
  • Under what circumstances may genuineness of
    assent be lacking?
  • What is the difference between a mistake of law
    and mistake of fact?
  • What elements must exist for fraud?
  • What contracts must be in writing to be
    enforceable?
  • What is parole evidence?

3
Genuineness of Assent
  • Mistake
  • Mistake of Value (contract is enforceable)
  • Mistake of Fact
  • Unilateral Mistake of Material Factmistaken
    party does not have the right to cancel contract
    unless (1) the non-mistaken party knew or should
    have known about the mistake, or (2) there is a
    clerical error.
  • Bilateral Mistakesif both are mistaken either
    one can cancel the contract.

4
Fraudulent Misrepresentation
  • Innocent party can cancel the contract.
  • Plaintiff must show
  • Misrepresentation of a material fact (not
    opinion) by conduct, silence or words
  • Intent to deceive
  • Innocent party must justifiably rely on the
    misrepresentation.
  • Plaintiff must have suffered a legal injury

5
Undue Influence Duress
  • Undue Influence
  • Arises from a special relationship of trust.
  • A stronger party overcomes a weaker partys free
    will by exerting psychological influence.
  • Duress
  • Threat of physical force or extortion
  • Can serve as basis for rescission of contract.
  • Economic need, by itself, is not duress.

6
Statute of Frauds
  • Requires certain contracts to be in writing and
    signed to be enforceable.
  • A contract involving an interest in land.
  • A contract that by its terms cannot be performed
    within 1 year of execution.
  • Collateral contracts to answer for the debt of
    another.
  • Prenuptial agreement.
  • Contracts for sale of goods over 500.
  • Exceptions
  • Partial performance and detrimental reliance.

7
Parol Evidence Rule
  • Prohibits the introduction at trial of evidence
    of the parties prior communications that
    contradicts the written contract.
  • Exceptions
  • To show Fraud or Mistake
  • Subsequent modifications
  • Ambiguous Terms
  • Prior Dealings
  • Obvious or gross clerical errors
Write a Comment
User Comments (0)