Chapter 8: Genuine Agreement

Genuine Agreement: “Meeting of the minds”

I: Mistake

1. Unilateral Mistake– error made by one party to a contract
   • Mistake as to the nature of the agreement.
     • if one party fails to understand any part of the agreement, they cannot avoid the contract.
   • Mistake as to the “Identity of a Party”
2. Bilateral Mistake
   • Mistake as to the “Possibility of Performance”.
     • Subject matter has become impossible to perform- void or avoid contract.
     • Mistake as to the subject matter.

II: Fraud– “deliberate deception” to secure an unlawful gain or profit.

• Proof of Fraud:
  1. False Misrepresentation of a fact
     • Material Fact
     • concealment (nondisclosure)
  2. Representation must be known to be false.
  3. False Misrepresentation intended to be relied upon.
  4. False Misrepresentation actually relied upon.
  5. Result in loss: cost money somewhere along the line because of fraud.

III: Innocent Misrepresentation– Statement of a supposed fact that turns out to be false. Both parties can avoid the contract.

IV: Duress: Influencing an individual by force or threat of force which persuades the individual into an agreement.

• Economic Duress– when your financial security is put at risk by not agreeing to enter into a contract.
• Can “Void“

V: Under Influence– unfair and improper persuasive pressure expressed by one party in a relationship of trust.

• Can “Avoid“