BCOR 3000: EXAM 3
52 Cards in this Set
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Unilateral mistake
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when 1 party is mistaken on a material fact, Generally no right to relief except a mathmatical error, and the other party know about the mistake.
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Bilateral Mistakes
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Mutual mistake on a material fact between all parties in a contract. Or they attached different meanings to the same term. This contract is voidable
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Fraudulent Misrepresentation
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1) misrepresentation on material fact. 2) intent to deceive other party 3) the other party was justified in relying on the information. Option: 1) rescind contract 2) enforce contract and seek damages for fraud
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Misrepresentation by action
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when a party takes specific action to conceal a fact that is material to the contract
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misrepresentation of law
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NOT FRAUD: people are assumed to know state and local law
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misrepresentation by silence
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NOT FRAUD: neither party to a contract has a duty to come forward and disclose facts
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Scienter
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Scienter is a legal term that refers to intent or knowledge of wrongdoing.
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undue influence
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when a party has the ability to greatly influence another party. and taking advantage of that power
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Duress
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In jurisprudence, duress or coercion refers to a situation whereby a person performs an act as a result of violence, threat or other pressure against the person.
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Statute of frauds
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The statute of frauds refers to the requirement that certain kinds of contracts be memorialized in a signed writing with sufficient content to evidence the contract. 1) Property 2) long term 3) collateral 4)marriage 5) > $500
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Collateral promise
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A secondary promise that is ancillary to a principle transaction or primary contractual relationship
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Exceptions to the statute of frauds
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1) patial performance 2) admission 3)promissary estoppel 4)special exceptions
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parole evidence rule
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The parol evidence rule is a substantive common law rule in contract cases that prevents a party to a written contract from presenting extrinsic evidence that contradicts or adds to the written terms of the contract that appears to be whole.
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integrated contract
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A written contract that is meant to constitute the final expression of the parties' agreement
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privity of contract
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3rd parties have no rights in contracts to which they are not parties
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Assignment
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transferring to another all or part of one's rights arising under a contract
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Delegation of duties
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the act of transferring to another all or part os one's duties arising under a contract
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Assignor
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A party who transfers his/her rights under a contract to another party
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Assignee
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A party to whom the rights under a contract are transferred or assigned
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Obligee
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One to whom an obligation is owed
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obligor
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One who owes an obligation to another
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Delegator
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A party who transferred or delegates his/her obligations to another party
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delegatee
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A party to whom contractual obligations are transferred or delegated
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Discharge
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The termination of an obligation: the law releases parties or the duties are fully performed.
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performance
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The fulfillment of one's duties arising under a contract with another
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condition
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A qualification in a contract; the occurring of which creates, suspends, or terminates the obligations of the contracting parties
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Condition precedent
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A condition that must be met before a party's promise becomes absolute
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Condition Subsequent
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A condition that if it occurs operates to terminate a party's absolute promise to perform
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Concurrent Conditions
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Conditions that must occur or be performed at the same time. No obligations arise until these conditions are simultaneously performed
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Tender
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An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.
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Complete Performance
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When a party performs exactly as agreed in a contract
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Substantial Performance
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A party who in good faith performs substantially all the terms of a contract. they can then enforce the contract on the other party.
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Performance to the satisfaction of the "other"
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The completed performance must personally satisfy one of the parties, or a 3rd party before the person may be discharged for performance.
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Material breach of contract
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The failure without legal excuse of a promisor to perform the obligation of a contract
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Anticipatory repudiation of a contract
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An action by a party that indicates that they will not perform an obligation that the party is contractually obligated to perform at a future time.
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Discharge by rescission
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Both or one party chooses to leave the contract; they must be returned to the positions they were in prior to the contract
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Discharge by novation
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The substitution of a new person for the removal of the old party in a contractual agreement
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Discharge by accord and satisfaction
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the parties agree to accept performance different from the performance originally promised
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Discharge by contract alteration
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the law discharges the innocent party when one party materially alters the contract without the knowledge of the other party.
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Discharge by limitations
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reasonable amount of time
Bankruptcy
unforeseeable circumstances that cause performance to be impossible
Death
Destruction
Change in law that causes the action to be illegal
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Commercial impracticability
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When additional burden was created through an extreme and unknown circumstance
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4 types of contract damages
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Compensatory
consequential
punitive
nominal
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Compensatory damages
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Damages actually sustained directly from a breach in contract
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incidental damages
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Damages awarded to compensate for expenses that are directly incurred because of a breach of contract
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Nominal Damages
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A small monetary award granted to a plaintiff when no actual damage was suffered, but injury occured
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mitigation of damages
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A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant
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liquidated damages
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An amount, stipulated in the contract, that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach
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Penalty
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A certain amount of money to be paid in the event of a default of breach of contract, and is designed to penalize the breaching party
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Consequential damages
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Special circumstances that the breaching party is aware of that causes injured party additional loss
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restitution
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An equitable remedy under which a person is restored to their original position.
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Specific performance
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an equitable remedy requiring exactly the performance that was in the contract
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reformation
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Equitable remedy where courts rewrite the contract to reflect the parties' true intentions: for fraud or mutual mistake
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Exam 1 (CH 1-3)