1. Chapter 8 in the business law text
Genuine Agreement
Chapter 8 in the business law text

2. “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

3. Mistake
unilateral mistake
bilateral, or mutual, mistake

4. 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

5. 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

6. 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

7. 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

8. 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.

9. 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.

10. 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.