1. Genuine Agreement Lessons CHAPTER 8 8-1 Duress and Undue Influence
8-2 Mistake, Misrepresentation, and Fraud

2. Duress and Undue Influence
CHAPTER 8
10/8/2019
Chapter 8
LESSON 8-1
Duress and Undue Influence
GOALS
Define genuine agreement and rescission
Identify when duress occurs
Describe how someone may exercise undue influence

3. Chapter 8
GENUINE AGREEMENT
Genuine agreement is an agreement to enter into a contract that is evidenced by words or conduct between the parties.

4. Chapter 8
RESCISSION
Rescission is backing out of the transaction by asking for the return of what you gave in the transaction, and offering to give back what you received.

5. Chapter 8
DURESS
Duress occurs when one party uses an improper threat or act to obtain an expression of agreement
Threats of illegal conduct
Threats to report crimes
Threats to sue
Economic threats

6. WHAT IS UNDUE INFLUENCE?
Chapter 8
WHAT IS UNDUE INFLUENCE?
Undue influence occurs when one party to the contract is in a position of trust and wrongfully dominates the other party.
There are two key elements in undue influence
The relationship
Unfair persuasion

7. Mistake, Misrepresentation, and Fraud
Chapter 8
LESSON 8-2
Mistake, Misrepresentation, and Fraud
GOALS
Describe the kinds of mistakes that can make a contract void or voidable
Determine when misrepresentation has occurred
Identify when fraud has occurred
Discuss the remedies for mistake, misrepresentation, and fraud

8. WHAT IS A UNILATERAL MISTAKE?
Chapter 8
WHAT IS A UNILATERAL MISTAKE?
A unilateral mistake occurs when one party holds an incorrect belief about the facts related to a contract.
Recognized unilateral mistake
Induced unilateral mistake

9. WHAT ARE MUTUAL MISTAKES?
Chapter 8
WHAT ARE MUTUAL MISTAKES?
When there is a mutual mistake both parties have an incorrect belief about an important fact.
Mistake about the subject matter
Mistake of law

10. WHAT IS MISREPRESENTATION?
Chapter 8
WHAT IS MISREPRESENTATION?
For a statement to be treated as misrepresentation, three elements are required
Untrue statement of fact
Active concealment
Silence
Materiality
Reasonable reliance

11. INNOCENT MISREPRESENTATION
Chapter 8
INNOCENT MISREPRESENTATION
Innocent misrepresentation occurs when a party to a contract does not know that a statement he or she made is untrue.

12. FRAUDULENT MISREPRESENTATION
Chapter 8
FRAUDULENT MISREPRESENTATION
Fraudulent misrepresentation occurs when a party to a contract knows that a statement he or she made is untrue.

13. FRAUD AND REMEDIES FOR FRAUD
Chapter 8
FRAUD AND REMEDIES FOR FRAUD
Misrepresentation must be intentional or reckless
The misrepresentation or concealment must injure
Remedies for fraud
Rescission
Damages
Punitive damages