BCOR 320 1nd Edition Lecture 22 Chapter 10: Contract Impediments cont Special problem: Silence Nondisclosure of a fact is misrepresentation only when disclosure is necessary:• To Correct a Previous Assertion• To Correct a Basic Mistaken Assumption• To Correct a Mistaken Understanding about a Writing • In A Relationship of Trust– When one party naturally expects openness and honesty, based on a close relationship, the other party must act accordingly.Mistake—Bilateral A bilateral mistake occurs when both parties negotiate based on the same factual error.• If the parties contract based on an important factual error, the contract is voidable by the injured party. Conscious Uncertainty• No rescission is allowed where one of the parties knows she is taking a risk.Mistkake—Unilateral Sometimes only one party enters a contract under a mistaken assumption, a situation called unilateral mistake.• to rescind for unilateral mistake, a party must demonstrate that she entered the contract of a basic factual error and that either:– (1) enforcing the contract would be unconscionable or (2) the nonmistaken party knew of the errorThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.The statue of fraud Many agreements are unenforceable, unless it, or some memorandum of it, is in writing and signed. Agreements that must be in writing are those:• For any interest in land• That cannot be performed within one year• To pay the debt of another• Made by an executor of an estate• Made in consideration of marriage; andFor the sale of goods over $500Agreement for interest in land: A contract for interest in land must be in writing to be enforceable.• Exception: Full Performance by the Seller• Exception: Part Performance by the Buyer– the buyer of land may be able to enforce an oral contract if she paid part of the price and either entered the land or made improvements to it.What the writing must contain: The contract or memorandum must be signed by the defendant, and It must state with reasonable certainty:• the name of each party• the subject matter of the agreement, and all of the essential terms and promisesSale of goods— A contract for sale of goods worth $500 or more is not enforceable unless there is some writing, signed by the defendant, indicating that the parties reached an agreement.Electronic contracts: In this age of Internet commerce, the rules of contracting have to be interpreted in light of the technology. • Is an e-mail sufficient to be a writing?• Is an electronic signature sufficient? However, the essential questions are still the same:• Did the parties intend to make a deal?• What were the terms?Is there evidence that they
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