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chapter 7 vocab

TermDefinition
duress occurs when one party uses an improper threat or act to obtain an expression of agreement Duty of accounting requires agent to account to
fraud intentional misrepresentation of an existing, important fact
fraudulent misrepresentation party to a contract knows that a statement he or she made is untrue..
genuine assent agreement to enter into a contract that is evidenced by words or conduct between the parties.
innocent misrepresentation party to a contract does not know that a statement he or she made is untrue.
material fact important facts that influence both parties’ decisions about a contract
mutual mistake both parties to a contract have an incorrect belief about an important fact
ratification acting toward the contract as though one intends to be bound by it, principal’s assent to unauthorized acts of an agent.
rescission backing out of the transaction by asking for the return of what you gave and offering to give back what you received.
undue influence occurs when one party to a con-tract is in a position of trust and wrongfully dome-nates the other party.
unilateral mistake occurs when one party holds an incorrect belief about the facts related to a contract.
void without legal effect
voidable contract in which the injured party can withdraw, thus cancelling the contract
Created by: gwilliams251
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