B_LAW 210 – 1st Edition Lecture 11 Outline of Last Lecture 1. Capacity2. LegalityOutline of Current Lecture I. ConsentII. Statute of FraudsCurrent LectureThe absence of consent makes a contract voidable:~Rescind = reject ~Ratify = accept - Examples of an absence of Consent1. Mistake: Mutual (Bi-lateral) Mistake: “Mutual misunderstanding concerning a basicassumption 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 littlecontact 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 Parties2. Subject Matter3. Consideration4. 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