B LAW 210 1st Edition Lecture 11 Outline of Last Lecture 1 Capacity 2 Legality Outline of Current Lecture I Consent II Statute of Frauds Current Lecture The absence of consent makes a contract voidable Rescind reject Ratify accept Examples of an absence of Consent 1 Mistake Mutual Bi lateral Mistake Mutual misunderstanding concerning a basic assumption on which the contract was made Unilateral Mistake Occurring when only one of the contracting parties is mistaken about a material fact Mistaken party is bound unless other party knew or should have known of the mistake 2 Fraud Misrepresentation that is consciously false and is intended to mislead another Elements A misrepresentation of a material fact must occur There must be intent to deceive The innocent party must justifiably rely on the misrepresentation Remedy Rescission AND damages including possible punitive damages 3 Undue Influence Unreasonable persuasion arises from a special relationship EX When a housekeeper convinces an elderly person to leave everything to her You look at the relationship to the party elderly person with little contact besides housekeeper These 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 4 Duress Forced into an agreement not voluntary use of threats No real alternative to signing the contract coercion EX If you don t buy this car I ll shoot you Contracts DO NOT have to be in writing UNLESS they fall under the Statute of Frauds The Statute of Frauds applies to these contracts 1 Collateral Agreements i e guarantees 2 Interests in Real Estate 3 Contract which cannot be performed within one year 4 Sale of goods over 500 5 Marriage Executor Prenuptial Agreement Agreement to personally cover a decedent s debts Statute of Frauds The writing to be sufficient must contain 1 Identity of the Parties 2 Subject Matter 3 Consideration 4 Quantity 5 Signature of party to be charged Signed by the party against whom it is to be enforced E Signature Act Allows electronic signatures to meet the writing requirement Parol Evidence Rule Courts will not look outside the written words of a contract unless o To explain ambiguity o To prove fraud or duress o If there is no merger clause to show supplemental info Even if it s not enforceable under the Statue of Frauds look at Quasi Contract Promissory Estoppel