1. Genuine Agreement
A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree

2. Mistake Unilateral Mistake An error on the part of one of the parties
Cannot get out of contract
Types:
Nature of the Agreement
Signing a contract you don’t understand or have not read
This applies to signing a contract in a language you don’t understand
Identity of a Party
Bound by contract with face to face meetings
May be able to void a contract made NOT face to face

3. Bilateral Mistake (Mutual Mistake)
Both parties are mistaken
Types:
Possibility of Performance
Contract is impossible to perform Either party can void contract
Subject Matter
Either party can void contract

4. Fraud Deliberate deception for an unfair or unlawful gain
Define each word in bold

5. Deliberate: Done with or marked by full consciousness of the nature and effects; intentional
Deception: The fact or state of being deceived
Gain: To secure as profit or reward
In order to prove fraud, you must prove the above 3 definitions

6. Proving Fraud: False Representation of Fact
Must be a material (important) fact
Concealment (nondisclosure) may be considered false representation
Representation Known to be False
False Representation Intended to be Relied Upon
False Representation Actually Relied Upon
Resulting Loss

7. Innocent Misrepresentation
Make an innocent statement of supposed fact that turns out to be false
Injured party has the right to rescind (take back) the offer No rights to damages

8. Duress
Overcoming a person’s will by use of force or by threat of force or bodily harm
Economic Duress
Threats to a person’s business or income
Actual physical harm will void the contract
Threat of physical harm will make contract voidable
A threat of exercising one’s legal right is NOT duress Ex Threatening to sue someone and you have right to sue, is NOT duress

9. Undue Influence
Unfair and improper persuasive pressure within a relationship of trust

10. Match the column on left with who they have undue influence over in the right column?
Doctor
Lawyer
Parents
Teacher
Student
Children
Client
Patient
Answers: 1-4, 2-3, 3-2, 4-1