1. Chapter 7
Genuine Assent

2. Objective: Recognize when genuine assent is not present.
Identify the two key elements in undue influence.

3. Genuine Assent and Duress
Genuine Assent: a true and complete agreement. It is an agreement to enter into a contract that is evidenced by words or conduct between the parties.

4. Genuine Assent and Duress
Voidable: Occurs when an injured party cancels the contractual obligation
Rescission: When the injured party tries to get back what has already been put into the contract.

5. Genuine Assent and Duress
Ratification:
Duress:
Conduct of all parties that confirm they intent to be bound by the contract.
Occurs only when on party uses an improper threat or act to obtain an expression of a contract.

6. Genuine Assent and Duress
Undue Influence: When one party to the contract is in a position of trust and wrongfully dominated the other party.

7. Types of Contractual Mistakes
Unilateral Mistakes: Occurs when only one party holds an incorrect belief about the facts or law related to the contract.
Mutual Mistake: (bilateral mistake): Occurs when both parties have an incorrect belief about an important fact (voidable), or the applicable law (not voidable)

8. Types of Contractual Mistakes
Material Facts: facts that influence the parties’ decisions about the contract.
Void: When something is without legal effect.

9. Misrepresentation
Innocent misrepresentation: Occurs when a party, during the negotiations, makes a statement that turns out to be untrue.
Fraudulent misrepresentation: Occurs when a party knowingly makes a statement that in untrue.
Active Concealment: A substitute for a false statement of fact.

10. Silence
There are three important situations where disclosure is required.
When a statement about a material fact omits important information.
When a true statement is made false by subsequent events.
When one party knows the other party has made a basic mistaken assumption.

11. Materiality
There are three ways an untrue statement can be determined to be material:
If an untrue statement would cause a reasonable person to contract.
If the defendant knew the plaintiff would rely on the statement.
If the defendant knew the statement was false.

12. Materiality
Reasonable Reliance: Even though the statement is material. There is no misrepresentation unless the victim reasonably relied on it.

13. Fraud and Remedies for Fraud
Fraud exits: when a person deliberately lies or conceals a material fact. To establish fraud, there must be proof of injury.

14. Remedies for Fraud
Rescission: Voiding of the contract by the injured party. Normally, when you rescind, anything you received must be returned.
Damages: The defrauded party may seek damages for the loss created by the fraud.

15. Damages
Punitive Damages: A form of punishment. These damages are awarded above the amount of the defrauded party’s original damages to act as punishment to the party who committed fraud.