Grand Valley State University **We aren't endorsed by this school
BUS 201
Oct 6, 2023
Uploaded by DoctorFlagWren21 on coursehero.com
WEEK 6 OUTLINE: CONTINUE LOOKING AT WAYS OUT BASED ON THE PARTIES TO THE CONTRACT (Chapter 12) I. Reality of assent/consent A. Mistake - an untrue belief about a past or existing fact 1. Bi-lateral / Mutual - both parties made the mistake. a. basic assumption about the subject matter of the contract. b. material c. adverse effect on one who does not bear the risk. 2. Unilateral - only one party is mistaken a. other party knew or had reason to know b. caused by a clerical error not caused by gross negligence. c. unconscionability B. Misrepresentation two types - an untrue statement of past or existing fact a statement made that the person knows is untrue. Purposeful lie 1. Fraudulent / Intentional Misrepresentation - I use these terms interchangeably. a. Elements i. false statement about a past or existing fact -Concealment -Nondisclosure ii. intent to deceive iii. reliance by the innocent party iv. reliance is justified 2. Innocent / Negligent Misrepresentation - I use these terms interchangeably. This is more like when a person makes a statement when they are unsure of its truth. i. add to the above listed elements that the untruth must relate to a MATERIAL FACT C. Undue Influence - unfair persuasion D. Duress - coercion Finally, look for a way out of the contact based on some flaw with the agreement itself... Legality - (Chapter 11)not just the violation but other scenarios as well... II. Contracts violating a statute A. Commit a crime or tort
B. Licensing - look to purpose public good or raising $$ C. Usury - illegally high interest rate D. Gambling - betting E. Sabbath laws - becoming more rare, but contracts that can't be performed on Sundays or other venerated days/holidays III. Contracts violating public policy -Contracts that are contrary to the public good or infringe on valued activities. A. Covenants not to compete B. Unconscionable substantive and procedural C. Exculpatory Clauses / Releases IV. Impact of Illegality A. In pari delicto - parties not at equal fault. void B. Justifiable ignorance C. Withdraws before illegality D. Severable vs. Indivisible Formality: (Chapter 13) V. History of the statute at common law - Statute of Frauds, certain bilateral executory contacts must be in writing in order to be enforceable. VI. Coverage of the statute (MY LEGS) A. M arriage B. Y ear C . L and D. E state E. G oods F. S econdary
Page1of 2
Uploaded by DoctorFlagWren21 on coursehero.com