Business Law Chapter 11
Terms
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- Duress
- Wrongful or unlawful act or threat that overcomes the free will of a party
- Physical Duress
- Coercion involving physical force renders agreement void
- Improper Threats
- Improper threats or acts including economic and social coercion render the contract voidable
- Undue Influence
- The unfair persuasion of a person by a party in a dominant position based on a relationship of trust and confidence
- Fraud in the Execution
- A misrepresentation that deceives the other party as to the very nature of the contract; renders the agreement void
- Fraud in the Inducement
- Misrepresentation regarding the subject matter or a contract that induces the other party to enter into the contract; renders the contract voidable
- Misrepresentation
- Some positive statement or conduct that is not in accord with the facts
- Concealment
- Action taken to keep another from learning a fact
- Fiduciary
- Person who owes a duty of trust, loyalty, and confidence to another
- Fact
- An event that took place or a thing that exists
- Opinion
- Belief in the existence of a fact or a judgement as to value
- Puffing
- Sales talk that is considered general bragging or overstatement
- Material
- Of substantial importance; likely to induce a reasonable person to enter inot the contract
- Scienter
- Guilty knowledge
- Justifiable Reliance
- Reasonably influenced by the misrepresentation
- Negligent Misrepresentation
- Made without due care
- Innocent Misrepresentation
- Misrepresentation made without knowledge of its falsity but with due care
- Mistake
- An understanding that is not in accord with existing fact
- Mutual Mistake
- Both parties have a common but erroneous belief forming the basis of a contract
- Unilateral Mistake
- Erroneous belief on the part of only one of the parties to a contract
- Assumption of Risk of Mistake
- A party may assume the risk of a mistake
- Effect of Fault upon Mistake
- Not a bar to avoidance unless the fault amounts to a failure to act in good faith