Genuine Agreement
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Transcript Genuine Agreement
Genuine Agreement
Chapter 8 in the business law text
“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
Mistake
unilateral mistake
bilateral, or mutual, mistake
Unilateral Mistake
an error on the part of one of the parties
to the contract
This ordinarily does not make the
contract voidable.
Types of unilateral mistake
– as to the nature of the agreement
– as to the identity of a party
Bilateral Mistake
an error on the part of both (or all) of the
parties to the contract
This makes the contract voidable by
either party.
Types of bilateral mistake
– as to the possibility of performance
– as to the subject matter
Fraud (deceit)
deliberate deception to secure an unfair
or unlawful gain
Persons induced into a contract by
fraud have a choice.
– rescind, or cancel the contract
– sue for monetary damages
Fraud - the five elements
false representation of fact
party making the representation must
know it’s false
representation made with the intent it be
relied upon
reasonable reliance by innocent party
on the representation
monetary loss
Innocent Misrepresentation
representation which turns out to be
false but which was believed to be true
at the time it was made
The other party may rescind the
contract but may not sue for monetary
damages.
Duress
overcoming a person’s will be use of
force or by threat of force or bodily harm
If 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.
Undue Influence
unfair and improper persuasive
pressure exercised by one person in a
relationship of trust with another person
The contract is voidable by the innocent
party.