8-1
Making Genuine Assent part of a valid contract means protecting this right
Choice of each party or ability to enter under their own free will
If a party makes a unilateral mistake, what type of remedy can they ask for?
- Nothing, unless the mistake is a recognized or induced unilateral mistake
Definition of consideration
Joey wants to get high jump sneakers, so he has a chance to beat his basketball rival. When online, a chat opens in case he has questions. Joey opens the chat feature, asks it if these sneakers will help him add 2 feet to his jump and the person says "At least, likely 3-4 feet!" Joey was going to buy a $129 pair of Nikes, but because of this advice, buys the $700 pair, only to learn they do not work and he lost a bet to his basketball rival and now owes her $5000 because of the loss. What took place and what can Joey ask for as a remedy?
Fraud, recission and compensatory damages for $5000+
This is the only type of remedy for misrepresentation
Rescission
When a contract is missing Genuine Assent, its considered this
Voidable
If a mistake is bilateral, what happens to the contract?
Void
3 elements of consideration
1. Give
2. Trade
3. Legal Value
School Club President Olivia wants to assign someone to make shirts for the club. A kid named Cartinelli agrees to take the role. After the club votes on a color scheme, logo and style, Cartinelli asks the group if he can add something personal to the shirt and shows Olivia 2 drawings. Olivia says "Sure, but only use the one on the right". Unfortunately Olivia's right is the opposite of Cartinellis so the shirts come with Dragons on it and the club does not want them. What took place and what happens to the contract?
Bilateral Mistake and Void
Most misrepresentation falls into this type
Innocent
Using a threat or improper act to obtain an agreement is called this
Duress
These are the remedies available to a victim of fraud
Rescission, Compensatory damages or punitive damages
When a party acts based on a promise being made to them
Legal Detriment
Hulk Hogan is completing a degree in AP US History when his teacher Brycen goes over to him and says "Hey, your project better be something special, because with your grades this semester, anything less than an A will result in a failure". Hogan replies "Professor Brycen, I know where you live, I know where you park your car and I have friends. Pass me or you know what will happen!" What took place and what can Brycen ask for as a remedy?
Threat to commit a crime or Undue Influence, rescission of the grade
Joey goes to the store to buy a can of beans and when he gets home he realizes he grabbed corn instead. What took place and what type of law does this fall under?
Unilateral Mistake and UCC
These are 3 of the 4 categories of duress discussed in class
1. Threat of illegal conduct
2. Threat to report a crime
3. Economic Duress
4. Threat to sue with no grounds
These are the 3 elements needed to prove Misrepresentation
1. Untrue statement or active concealment
2. Material
3. Relied on false information to make decision
Promising not to do something I have a legal right to do
Forbearance
Old lady Eckhert is ready to retire and decides to have a garage sale, as she is scaling down a bit. During the garage sale, a neighborhood kid named "Little Gavin" walks over to a bike and asks old lady Eckhert if its a Huffy from the 1950's. She responds, "Yes it is. I was given this as a present from my dad in the 1950's". Little Gavin knows the bike is worth a lot more than the $200 she is asking and buys it, only to later learn its a 1947 model, worth $25. 3 questions. First, what specifically took place, next what remedy can Little Gavin ask for and what type of law does this contract fall under?
1. Innocent Misrep
2. Rescission
3. Common Law
This is the most common type of consideration exchanged
Promise for a promise (Or a benefit for a benefit)
Is Undue Influence a form of duress? And, these are the 2 things that must be proven for a case of Undue Influence
1. Yes, it is duress
2. A relationship and unfair pressure or persuasion
These are the 5 elements needed to prove fraud
1. Untrue statement or active concealment
2. Material
3. Relied on false information to make decision
4. Intent to deceive
5. Intent to injure
Defined as a change in the parties position based on the contract
Legal Value
Brookie is going to the grocery store to buy some of her favorite cookies, as they are on sale. These are baked fresh daily and she loves them so much, she usually buys 5-6 at a time! When Brookie goes to the bakery, a stock person named Natalie is putting out fresh hard roles. Brookie says "Where are the Oatmeal Raison cookies that are on sale and can you tell me if they are fresh out of the oven?" Natalie points to the bin where the cookies are located and says "They are always fresh", even though she is not sure when they were last stocked. If a mistake occurs, what type of mistake is it, what can Brookie ask for as a remedy (IF anything) and what type of law does this fall under?
1. Induced Unilateral Mistake
2. Rescission
3. UCC
If a contract is disputed over the consideration one side received, the only thing a judge will look at is this.
Was it fair or did they get what they expected to get, never the value