1. 9.1 b a c kn e x t h o m e Chapter 9 Objectives  Describe the mistakes that do not invalidate a contract.  State what types of mistakes normally invalidate contracts.  Identify the situations in which fraud, duress, or undue influence are present.  Explain the remedies available to the victim of acts rendering contracts voidable.

2. 9.2 b a c kn e x t h o m e Agreement or Mistake? Mark agrees to sell Geraldine his car for $3,000, without specifying it was a 1989 Toyota. She could view it by driving to his home where it would be in the driveway. Unknown to Mark, his wife had come home early and parked their Ferrari in the driveway. Geraldine sees the Ferrari and thinks it could be bought for $3,000. She immediately tells Mark she wants to buy it. Has there been a meeting of the minds? No - the mistake was mutual. © 2002 West Educational PublishingTo accompany Law for Business, 14e, by Ashcroft and Ashcroft Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss Let’s Discuss

3. 9.3 b a c kn e x t h o m e Mutual Mistakes  A mutual mistake will render a contract defective except in what mistakes?  a. Value, quality, or price b. Terms of the contract c. The law d. Expectations  Are parties to contracts expected to have knowledge of the law?  Yes Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz

4. 9.4 b a c kn e x t h o m e Kinds of Fraud Fraud in the Inducement Fraud in the Inducement Fraud in the Execution Fraud in the Execution Active Fraud Active Fraud Passive Fraud Passive Fraud Innocent Misrepresentation Innocent Misrepresentation

5. 9.5 b a c kn e x t h o m e Duress  Give an example of each of the following types of duress: Physical Emotional Financial  Explain the difference between undue influence and duress. Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz Quick Quiz

6. 9.6 b a c kn e x t h o m e Remedies for Breach of Contract  You may sue to recover money, goods, or other things of value.  If the contract is executory on your part, you may sue to perform.  You may sue to have the contract judicially declared void.  You may sue for reformation (correction) of the contract.