GENUINE AGREEMENT.

Slides:



Advertisements
Similar presentations
Click your mouse anywhere on the screen to advance the text in each slide. After the starburst appears, click a blue triangle to move to the next slide.
Advertisements

Contracts and Contract Law
Section 6.1 Transferring and Ending Contracts.
ES 2.00 UNDERSTAND CONTRACT LAW
Chapter 7 Genuine Assent- O Determining whether a true and complete agreement exists.
Chapter 6. If the offeror makes a valid offer, and the offeree has made a valid acceptance, then a genuine agreement has been reached—”meeting of the.
Genuineness of Assent Chapter 7.
Chapter 11 Conduct Invalidating Assent. Assent Free and willing intent to be bound to a contract. Where a person has not freely assented to the terms.
CHAPTER 8 TEST REVIEW Genuine Assent.
BELL QUIZ ON CHAPTER 5 What is any agreement that is enforceable by law? There are six elements of a contract. Name TWO. How many promises does a bilateral.
Law for Business and Personal Use © South-Western, a part of Cengage LearningSlide 1 Chapter 7 Genuineness of Assent Chapter 7 Genuineness of Assent 7-1.
LAW for Business and Personal Use © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible.
Law for Business and Personal Use © Thomson South-Western CHAPTER 7 Genuineness of Assent 7-1Duress and Undue Influence 7-2Mistake, Misrepresentation,
25-1 Chapter 13 Genuineness of Assent and Undue Influence.
SECTION OPENER / CLOSER: INSERT BOOK COVER ART Fraud and Misrepresentation Section 6.1.
Section 6.2.
Pre-Learning Question
Contract Law for Paralegals: Traditional and E-Contracts © 2009 Pearson Education, Upper Saddle River, NJ All rights reserved Genuineness of Assent.
© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Chapter 13 Genuineness of Assent Chapter 13 Genuineness of Assent.
2. Genuine Assent – true and complete agreement Contract agreement cannot be based on: - one party deceiving another - an important mistake - use of unfair.
Genuine Agreement Chapter 6.
Genuine Agreement If the offeror makes a valid offer, and the offeree has made a valid acceptance, then a genuine agreement has been reached. The courts.
Chapter 8 in the business law text
Chapter 13 Capacity and Genuine Assent Twomey, Business Law and the Regulatory Environment (14th Ed.)
Genuine Agreement Mr. Sherpinsky’s Business Law Class.
SECTION OPENER / CLOSER: INSERT BOOK COVER ART Mistake, Duress, and Undue Influence Section 6.2.
Capacity And Genuine Agreement. 6 parts to a Contract Offer Acceptance Capacity Genuine Agreement Consideration Legality.
7-1Duress and Undue Influence 7-2Mistake, Misrepresentation, and Fraud.
Business Law. The Opening Scene  Alena  Hana  Viktor  Jake  Mr. Benes.
Contract Basics Business Law. From tort law to contract law TortContract What binds individuals Laws of society, as defined by statutes and precedents.
How Contracts Arise What Are Contracts? Any agreement enforceable by law.
How Contracts Come to an End
Understanding Business and Personal Law Mistake, Duress, and Undue Influence Section 6.2 Genuine Agreement In addition to fraud and misrepresentation,
CHAPTER 6 REVIEW 6.1: HOW TO END A CONTRACT 6.2: VOIDABLE CONTRACTS AND REMEDIES.
Genuineness of Assent Chapter 5. Genuineness of Assent ► A contract may be voidable if the parties have not genuinely assented to its terms. Assent may.
Genuine Agreement “meeting of the minds”
Genuine Assent Chapter 7. Genuine Assent ► True and complete intent to enter into a contract Without it, contracts are typically voidable.
By Ladavia Cullum. Section 6.1 Fraud- a deliberate deception intended to secure an unfair or unlawful gain. Rescind- To cancel a contract. Material Fact-
Chapter 7 Genuine Assent.
Chapter 6 Mistakes, Misrepresentation, and Fraud
Bell Ringer What is fraud? What is an innocent misrepresentation? Did anyone do anything fun over break?
Section 6.2 Voidable Contracts and Remedies. Section 6.2 Voidable Contracts and Remedies A contract that seems to be valid can be voided if the agreement.
Chapter 6 Genuine Agreement. Fraud  A deliberate deception to secure an unfair or unlawful gain  May rescind (cancel) the contract or sue for damages.
Chapter 5: ConTRACTUAL DEFECTS
CHAPTER 7 GENUINENESS OF ASSENT.
Contract Law: Genuine Agreement Objective 3.01 Understand requirements of each element of a contract.
Ch. 6 How Contracts Come to an End 6-1 Transferring and Ending Contracts 6-1 Transferring and Ending Contracts.
Duress & Undue Influence Genuine agreement also called genuine assent or mutual assent may be lacking due to fraud, misrepresentation, undue influence,
Chapter 12 Genuineness of Assent. Introduction Voluntary assent by the parties is necessary to create an enforceable contract. Assent is determined by.
Understanding Business and Personal Law Fraud and Misrepresentation Section 6.1 Genuine Agreement If the offeror makes a valid offer, and the offeree has.
Law for Business and Personal Use © South-Western Publishing G O A L S Duress and Undue Influence Define genuine agreement and rescission Identify when.
Genuine Agreement A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree.
FREE CONSENT Contract is voidable at the option of the party whose consent is not free  Coercion  Undue influence : Deemed to dominate when:  real or.
Chapter 15: Contracts – Mistakes, Fraud, and Voluntary Consent
Chapter 9 Mutual Agreement
MISTAKE Mistake: The parties entered into a contract with different understandings of one or more material facts relating to the subject matter of the.
Fraud and Misrepresentation
Genuine Agreement Contracts Part 2.
Genuine Agreement “meeting of the minds”
Legal Terms unilateral mistake (p. 133) bilateral mistake (p. 135)
Chapter 13 Genuineness of Assent
Law For Personal And Business Use
Section 6.2.
Section 6.1.
Legal Terms fraud (p. 128) rescind (p. 128) material fact (p. 129)
Jeopardy T/F 1 T/F 2 MC 1 MC 2 Random Q $100 Q $100 Q $100 Q $100
“Tomorrow- Friday February 5th”
Genuine Agreement A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree.
Contracts and Contract Law
Genuine Agreement Lessons CHAPTER Duress and Undue Influence
Presentation transcript:

GENUINE AGREEMENT

Defective Agreements When something goes wrong and what seems to be a valid contract really isn’t Fraud Misrepresentation Mistake Duress Undue influence

Fraud A deliberate deception intended to secure an unfair or unlawful gain If you have entered into a contract by fraud, you may: Rescind (cancel) the contract Sue for money damages Sue for punitive damages – damages designed to punish the wrongdoer for their conduct

Fraud To be successful in a lawsuit for fraud the following elements must be present: False representation of fact Party making the representation must know it is false False representation must be made with the intent to be relied upon Innocent party must reasonably rely upon the false representation Innocent party must actually suffer monetary loss

False Representation of Fact Requires a false representation of a material, existing fact. Material fact – a fact that’s important, it matters to one of the parties; not an opinion Can be oral, written, or actions that are deceptive Concealment – not revealing important information; also called passive fraud or nondisclosure **Examples…….

Representation Known to be False The party making the false representation must know that it is false Can be shown to be false Can be shown that the statement was made recklessly without regard for the truth **Examples…….

False Representation Intended to Be Relied Upon Party making the misrepresentation intends for the other party to rely upon the information as part of the contract **Examples…….

False Representation Actually Relied Upon False representation is reasonably relied upon by the other party when the agreement is made Cannot sue for fraud if the party doesn’t actually rely upon the information **Examples…….

Research Find a news article about a lawsuit involving contract fraud Does it meet the 5 elements necessary for fraud? Explain the elements you find mentioned in the article. A false representation of fact Party making the representation must know it is false False representation must be made with the intent that it be relied upon Innocent party must reasonable rely upon the false representation Innocent party must actually suffer some monetary loss

Resulting Loss You may choose to enter the contract as the result of false misrepresentation but unless there is loss suffered as a result of false misrepresentation, you cannot win a lawsuit for fraud. Examples…..

Innocent Misrepresentation Misrepresentation - an untrue statement of facts Innocent statement that turns out to be false If the party making the representation honestly believes it was true at the time, you may rescind the contract but not sue for fraud. Examples…..

??? Work with a partner and discuss is this situation is a case of potential fraud. A travel agency calls to offer you a vacation package to Europe for less than $200. To take advantage of the offer, you must send $200 in cash within 24 hours to supply a credit card number at the time of the call. What do you think? Remember the elements of fraud.

Mistake Unilateral mistake – an error on the part of one party to a contract Usually cannot avoid the contract since the other party has reasonable expectations because of the contract Examples…..

Mistake as to the Nature of the Agreement A unilateral mistake Not an excuse to avoid a contract If a party signs an agreement, they are bound to it even if they have not read it or are mistaken about what it says. Signature shows agreement with the terms of the contract. If someone doesn’t speak English, they are expected to have the contract (agreement) read and explained to them by someone they trust. Not an excuse to get out of a contract

Mistake as to the Identity of a Party Unilateral mistake Identity of a party is misunderstood, not clear May be cause to void a contract Examples…..

Bilateral Mistake Both parties to a contract are mistaken about an important fact Also called a mutual mistake Either party may avoid the contract

Mistake as to the Possibility of Performance Bilateral Mistake Both parties believe the duties described in the contract can be performed when they cannot Either party may get out of the contract Examples…..

Mistake as to the Subject Matter Bilateral mistake Both parties are mistaken as to the identity of the subject matter in the contract Contract may be avoided by either party Examples…..

Duress Overcoming a person’s will by use of force or by threat of force or bodily harm Must enter into a contract voluntarily, not under duress Agreements made under duress are either void or voidable

Physical Duress Actual physical violence is used to cause another to enter a contract Contract is void Threat of physical force to cause another to enter into a contract Contract is voidable

Economic Duress Threats to a person’s business or income that cause them to enter into a contract without real consent Examples….. A threat to exercise one’s legal rights is not duress

Undue Influence When a person uses unfair and improper persuasive pressure to force another person to enter into an agreement; stronger person substitutes their will for the will of the weaker person. Elements A dependency relationship – one party is dependent on the other party because of ill health, old age, or mental immaturity Unfair or improper pressure – independent person uses excessive pressure to force dependent person to enter a contract Beneficial contract - contract benefits the independent party at the expense of the dependent party Examples…..