Recap Duress amp Undue Influence Presentation on Mistakes Progress Reports Scholarships Writers of the future wwwwritersofthefuturecom All HS Students 5005000 INROADSorg Internship ID: 677844
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054 975 100Slide2
AgendaCans
Scholarships
Recap (Duress & Undue Influence)
Presentation on MistakesProgress ReportsSlide3
ScholarshipsWriters of the future
www.writersofthefuture.com/
All HS Students
$500-$5000INROADS.org
Internship
Minorities
Business and Engineering Slide4
Bell RingerWhat are the 6 elements of a contract?
Offer and Acceptance
Genuine Assent
CapacityConsideration
Legality
Writing**
Which of these elements do you think are affected by duress and undue influenceSlide5
What is Genuine Assent?True and complete agreement
Must be free of?
Duress
Undue influenceMistake
Misrepresentation
FraudSlide6
CHAPTER 7
Genuineness of Assent
7-1 Duress and Undue Influence
7-2 Mistake, Misrepresentation, and FraudSlide7
Chapter 7Slide
7
7-1
Duress and
Undue Influence
GOALS
Recognize when genuine assent is not present
Identify the two key elements in undue influenceSlide8
What is Legal Duress?
Legal Duress
an improper threat or act to obtain an expression of agreement (contract)
4 forms of legal duressSlide9
Chapter 7Slide
9
7-2
Mistake, Misrepresentation, and Fraud
GOALS
Recognize the types of mistakes that can make a contract voidable or void
List the criteria for a statement to be treated as a misrepresentation
Define fraud and describe the remedies for itSlide10
Chapter 7Slide
10
FOCUS
Scenario
Jane contracts with Mike to purchase one of his two skateboards. Jane thinks she has bought the red one, a premier skateboard. Mike thinks Jane has bought the blue one, his less valuable skateboard.
Question
Does a contract exist?Slide11
AnswerNo contract exist because a
mutual mistake
of fact about the identity of the
subject matterNo genuine assent bc
both
parties were mistaken
Chapter 7
Slide
11
NOTE: Mutual Mistakes of a contract about value do not void a contract. Picasso ExampleSlide12
Chapter 7Slide
12
Two types CONTRACTUAL MISTAKES?
Unilateral mistakes
Mutual mistakesSlide13
Chapter 7Slide
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Unilateral Mistakes
One party holds an incorrect belief
Facts or Law
Generally, does not affect the validity of contract
Most common unilateral mistake of fact:
Failure to read contract
Misunderstanding terms
Legalease Slide14
ExampleChapter 7
Slide
14Slide15
Chapter 7Slide
15
Mutual Mistakes
Also called bilateral contract
Both parties have an incorrect belief
Fact or applicable Law
Important facts that influence a person decisions are called
Material facts
Mutual mistakes of fact as to the identity of subject matter
voids the contractSlide16
EXAMPLE
Buyer and Seller think property is 41 acres
After the purchase is made they discover the land is only 28 acres
Is their a mutual mistake?Is the contract void?
Chapter 7
Slide
16Slide17
Answer
There is a mutual mistake
The contract is not binding
When a mutual mistake of law is made the contact is still binding.EX. Miszoned property agreement
Chapter 7
Slide
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Bugliosi saved $40,000 to buy the new car of his dreams. At the dealership, the sales staff convinced him to purchase option until his $40,000 was totally exhausted. When he went to register the car, he found that the state expected him to pay an 8% sales tax on the purchase price. Bugliosi thought the $3,600 of sales tax was part of the $40,000 purchase, like a retail store.
Chapter 7
Slide
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What type of mistake was made?
Is the contract voidable by Bugliosi?
I need a volunteer to read:Slide19
AnswerBugliosi made a unilateral mistake of law.
Contract is valid
Chapter 7
Slide
19Slide20
Chapter 7Slide
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ASSIGNMENT:
Use the internet to find examples of mistaken contracts that were voided or proved valid. State whether the mistakes were unilateral or mutual mistakes. Find 8 examples.Slide21
705 440 326Slide22
MisrepresentationSlide23
Essential QuestionWhat are the 3 criteria for a statement to be treated as a misrepresentation?
Chapter 7
Slide
23Slide24
AgendaCans
Recap (Mistakes)
Presentation-Misrepresentation & Fraud
Progress
Reports
AssessmentSlide25
Chapter 7Slide
25
7-2
Mistake, Misrepresentation, and Fraud
GOALS
Recognize the types of mistakes that can make a contract voidable or void
List the criteria for a statement to be treated as a misrepresentation
Define fraud and describe the remedies for itSlide26
Recap: 2 Types of MISTAKES
Chapter 7
Slide
26
Unilateral Mistake of Fact
Mutual Mistake of Law
Unilateral Mistake of Law
Mutual Mistake or FactSlide27
MISTAKE RECAP(Valid or NON-Valid)
Chapter 7
Slide
27
Unilateral Mistake of fact
Mutual Mistake of law
Valid
Unilateral Mistake of law
Mutual Mistake or Fact
Valid
Not-Valid*
ValidSlide28
Chapter 7Slide
28
WHAT IS MISREPRESENTATION?
Untrue statement of factSlide29
Innocent misrepresentation
Bill is selling his daughter’s car to Ted
Ted asked if the car has ever been in an accident
Bill says yes, because he didn’t know his daughter crashed it
Chapter 7
Slide
29Slide30
Chapter 7Slide
30
Fraudulent Misrepresentation
Knowingly issue an
untrue
statement
of fact
Active concealment
Silence
Materiality
Reasonable reliance
Innocent and Fraudulent misrepresentation is cause to void a transactionSlide31
1.) Untrue Statement of FactMust be a FACT
Not an opinion
Past or existing fact
Opinion Examples:“Best”, “Really good”, “Well”
Chapter 7
Slide
31
Future statements are opinions
Opinions given by experts are viewed as facts. Slide32
Active ConcealmentSubstituting a false statement for a fact
Chapter 7
Slide
32Slide33
Silence
Three situations where silence is not allowed
Material Fact
When a true statement is made false by subsequent eventsWhen one party knows the other has made a false assumption
Chapter 7
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Materiality3 Ways to determine Materiality
Reasonable person test
In the defendant knew the plaintiff would rely on the statement
If the defendant knew the statement was falseLies make non-material facts material
Chapter 7
Slide
34Slide35
Reasonable RelianceThere is no misrepresentation unless the victim reasonably relied on information
Chapter 7
Slide
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NOTECaveat Emptor: Buyer bewareDebating
Chapter 7
Slide
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Volunteer
Bambi sold Traci an almost new tanning bed for $700. In the negotiations for the sale, Tracy asked Bambi if the beds could fit the new D3 lights that had just come on the market, because her doctor ordered that she use those specific lights. Bambi had examined the D3 lights in the store the previous week and assured Tracy they fit. A few days after the sale, Tracy realized that the lights fits but the beds voltage wasn’t strong enough to power the lights effectively.
Can Tracy void the sale as a consequence?
Chapter 7
Slide
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AnswerYes. Tracy gets her money back.Innocent Misrepresentation
Chapter 7
Slide
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AssignmentCheck Edmodo
Chapter 7
Slide
39Slide40
Chapter 7Slide
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What are the three criteria for a statement to be treated as a misrepresentation?Slide41
Chapter 7Slide
41
FRAUD
The misrepresentation must be intentional or reckless
The misrepresentation or concealment must injureSlide42
Chapter 7Slide
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REMEDIES FOR FRAUD
Rescission
Damages
Punitive damagesSlide43
Chapter 7Slide
43
What are the remedies available for fraud?Slide44
What happens if lack of genuine assent is proven?Contract typically
voidable
If the injured party chooses, he/she can cancel the obligation
They get back whatever they have put into it
Enforcing voidable action is called
rescissionSlide45
Rescission
Requires promptness
Must occur before
ratification
Conduct/changes suggesting you intend to be bound by the contract