False statement on which you actually relied ~ A statement could reasonably be invoked when the agreement was reached. Example: Matt told you that the shoes he was selling were real Yeezy Boost 350 because they knew they were fake. You buy them at a much higher price than their actual value. 5 1. What is a real agreement? Read “What is your judgment?”, page 115 An agreement to enter into a contract attested by words or conduct between the parties AKA Genuine consent or mutual consent 2 OBJECTIVES Define the actual agreement and withdrawalIdentify when coercion occurs Describe how a person can exert undue influence Describe the types of errors, which can lead to the invalidity or cancellation of a contract Determine when a false statement occurred Identify the when the fraud occurred Discuss corrective measures for errors, misrepresentations and fraud 13 Situation. The IRS imposed a hefty tax and penalty on Stan. Stan hired Ashley to represent him to reduce taxes and penalties. On the last day before the deadline for filing a response with the IRS, Ashley refused to represent Stan. She said she would reconsider whether Stan would sign an agreement to pay a much higher fee than originally agreed for his services. Is this agreement enforceable? False statement that can be relied upon ~ The person making the false statement must intend for the other party to rely on their information in the course of contract negotiations.
I wanted to deceive you – I told you something to get you to buy something and I intend for you to trust what I am saying. Example: A car salesman tries to get you to buy a car, so he will tell you that the car`s engine is working well if you know that`s not true. If someone makes an offer and another party accepts that offer, a real deal has been made. However, sometimes things go wrong and the deal is considered flawed. Several circumstances can be at the origin of this flawed agreement: fraud, misrepresentation, error, coercion and undue influence. In this chapter, you will learn how to identify the elements of faulty agreements. By understanding them clearly, you can protect yourself and avoid becoming a victim. 27 13. REMEMBER. Errors in the object make the contract invalid in the absence of a real agreement Errors on the law can always lead to a valid contract, depending on the laws of the state, that is: Laws of the local area Most mutual errors create the right to cancel or cancel the contract 4 Chapters 8-1 Objectives: Define the actual agreement and withdrawalIdentify, When coercion occurs Describe how someone can exert undue influence 17 Quick Re-cap! What is a real agreement? What is a spill and when can it be used? What is coercion? What are the 2 main parts of undue influence? How can a person exert undue influence in a contractual environment? ~ Illness, age, mental disabilities, dependency ratio 37 situation. Matt tells Bret, “This Cadillac has excellent gasoline performance.
I took him on a trip last week and covered over 40 miles per gallon. Bret knows the cars and knows that the statement is exaggerated. He also decides to buy Matt`s car. If Bret changes his mind later, does he have a fraud lawsuit if it turns out the car only gets 13 miles per gallon? If you enter into a contract by fraud, you can terminate or terminate it. You can also bring an action for pecuniary damages. Punitive damages (money as a penalty) are also a possible option. 40 TO DO: Questions, page 123 (1-10) Chapter 8-2 quizInternet activity: Misrepresentation ~ A buyer may withdraw or terminate the contract, but may not sue for damages. A confirmation email will be sent to your inbox. Simply unsubscribe at any time. 32 17.
Materiality 1. A declaration is essential in the following cases:If a declaration would cause a reasonable person to accept a contract (total number of miles for a car, converted engine, baseball card) b. If the defendant knew that the plaintiff would rely on the statement * (oil change) c. If the defendant knew the statement was false * (at the local gas station and did not wait at the dealership) 34 18. Fraud and Anti-Fraud RemedyRele your verdict???, page 122 FRAUD: Intentional misrepresentation of an existing or material fact ALL elements of misrepresentation must be considered FRAUD, PLUS Misrepresentation: False, material, reasonably reliable breach of fact 19 Chapters 8-2: Error, misrepresentation and fraudRead what your verdict is, p. 119 Will it win???? 15 8. Two key elements of undue influence:A. The relationship: A relationship of trust, trust or authority between the two parties to a contract A formal relationship is NOT necessary EXAMPLES B. Illegal or unjust belief Difficult to prove in court Courts review unfair terms in the contract To avoid this, the stronger party must act honestly, fully disclose all important facts, Insisting that a weaker party receive independent legal advice * Harassment and persuasion does not necessarily mean that undue influence occurs 41 CHAPTER 8 REVIEW: Legal Vocabulary Worksheet, 124 Critical Thinking, 125 (21, 22, 23) Real Cases, 125 – Choose 1 of 25, 26, 27 The days of publishing a newsletter in the neighborhood are over. Smore helps you create amazing pages that you would proudly share. 24 What is your verdict ??, p.
120 Is the contract valid???? INTENTIONAL DECEPTION TO ENSURE UNFAIR OR ILLEGAL PROFIT Bilateral mistakes occur when both parties make a mistake (mutual error). Two types of bilateral errors: To prove undue influence, you must prove that the parties had a relationship of trust and that inappropriate persuasion was made. 12 Other examples of coercion2. Threats to report crimes can also be blackmail – gaining something valuable through coercion 3. Threats of prosecution The purpose does not need to be related to the lawsuit, that is: If, during a divorce, a husband threatens to sue for custody of the children if the wife does not give him shares 4. Economic threats Courts will consider both the THREAT and alternatives to the threatened party If the threatened party had no choice but to enter into a contract Coercion READ: Economic threats Paragraph 23 11. Two types of unilateral errorsA. Unilateral error recognized If the other party is aware of the error The court MAY grant the cancellation Read, In this case page 119 B.
Unilateral error induced If one party encouraged the other party to make the mistake, the contract is voidable, that is: Consider a diamond tray mixed with a CZ, and the jeweler encourages you to choose the CZ and pay the price of a diamond, this was induced 11 6. Examples of constraints 1. Threat of unlawful behaviour Commit an act of violence (e.B. stabbing) Threat of a crime (e.B. threat of stabbing) Commit an offence (e.B. Unlawful detention) Threat of misdemeanour Defamation, defamation, infliction of emotional suffering ** The actual crime or misdemeanour may relate to the physical life, liberty or property of the victim, family or close relatives ~ This contract would be void or voidable. Economic coercion occurs when threats to a person`s business or income cause them to enter into a contract without meaningful consent. 18 TO DO. Comparing and contrasting coercion and undue influence Page 118, 1-15 33 Fact or opinion?? This computer is one year oldThe engine has 40,000 miles on it This dog will be the perfect pet for you! The costume creates the image you need to double your business. Why is a person generally not legally required to say everything they know about a product or service bought or sold??? 31 Misrepresentation of fact2. Silence: Silence about defects or allow false assumptions about something 3 Situations where disclosure is required: When the statement about essential facts omits important information (e.g. B race car) When a true statement is false by subsequent events (e.g.B.
roof leak) When one party knows that the other party has made a mistake (for example. B, the formation of the house) See PAGE 121 36 20. Misrepresentation or obfuscation MUST hurtIt must be evidence for an injury does not need to be physical – can be monetary If there is a false statement but no injury, there is no fraud 16 9. The Lindbergh Abduction CaseRead: The Law in the Media, p. 116 When the press came to the grounds of Lindbergh Villa, it trampled on everything it could have used as evidence. What could have been done to avoid that? UNDUE MEDIA INFLUENCE: The media found Hauptmann guilty before he went to court. Can you think of examples where the modern media has handed down a judgment on a person accused of a crime? Resulting loss ~ You must prove that you have suffered damage due to false information provided by the other contracting party. If you don`t suffer a loss, you can`t win a fraud lawsuit. 39 Brief summary! What kind of mistakes make a contract voidable? What are the elements required for a misrepresentation to occur? What are the elements required for FRAUD to occur? What are the remedies against errors, misrepresentations and fraud? If the party has raised reasonable expectations, it cannot block the contract because of its error. Smore enables educators to connect with their community, streamline school communication, and increase engagement. 21 Ignorance of the law is not an excuse!!! How do you think this statement relates to a person`s failure to read a contract and the cancellation of a contract??? 30 16.
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