BULE 303: Ch. 11 - Contract
Performance and Breach fully solved
Defenses to Contract Enforcement - correct answer ✔✔1. Mistake
2. Statute of Frauds
Mistake (of Fact) - correct answer ✔✔when one or both parties have an erroneous belief either
about the subject-matter of the contract of some other aspect of the contract
Bilateral mistake of (material) fact - correct answer ✔✔(mutual) where both parties are
mistaken as to a material fact of the contract, or there is some contract ambiguity where a
coward or term that is material to the contract is susceptible to two different meanings
- if it is important to the subject of the contract, then the contract can be rescinded on the
grounds that no contract was really formed because the parties did not assent to the same
agreement
Unilateral mistake of (material) fact - correct answer ✔✔when only one party has mistaken the
fact of a contract --> as a result, it will not permit the mistaken party to rescind the contract
- general rule: a unilateral mistake does not give the mistaken party any right to relief from the
contract; the contract is usually enforceable by court
Exceptions to General Rule of Unilateral Contract (may be rescinded if) - correct answer ✔✔-
Other party to the contract knows or should have known (if one party made the mistake of fact,
and the other person knew they were mistaken or should have known they were mistaken)
- Mistake was due to an inadvertent mathematical mistake and was not gross negligence (type
of clerical error)
Mistake of Value - correct answer ✔✔contract cannot be voided
, Fraudulent Misrepresentation - correct answer ✔✔when one party intentionally induces the
other party to rely or act upon false assertion of fact --> as a result, contract is voidable by
innocent party
Misrepresentation of fact - correct answer ✔✔misrepresentation of fact that induce the
innocent party to enter into contract
Requirements-
1. Intentional misrepresentation of material fact
2. Reliance
3. Injury
Undue Influence - correct answer ✔✔when one party takes advantage of another person's
mental, emotional, or physical weakness and somehow unduly persuades that person to enter
into a contract
--> as a result, contract is voidable by innocent party
Duress - correct answer ✔✔when a party threatens to do some wrongful act against another
party unless they enter into the contract
--> as a result, contract is voidable by innocent party
(ex. blackmail)
Statute of Frauds - correct answer ✔✔(writing requirement)
state laws that require a certain type of contract be in writing and yet the parties ignore that
requirement
Most common contracts that have to be in writing: - correct answer ✔✔- contracts involving
interest in land (sale of land
- contracts that can't be performed within 1 year
Performance and Breach fully solved
Defenses to Contract Enforcement - correct answer ✔✔1. Mistake
2. Statute of Frauds
Mistake (of Fact) - correct answer ✔✔when one or both parties have an erroneous belief either
about the subject-matter of the contract of some other aspect of the contract
Bilateral mistake of (material) fact - correct answer ✔✔(mutual) where both parties are
mistaken as to a material fact of the contract, or there is some contract ambiguity where a
coward or term that is material to the contract is susceptible to two different meanings
- if it is important to the subject of the contract, then the contract can be rescinded on the
grounds that no contract was really formed because the parties did not assent to the same
agreement
Unilateral mistake of (material) fact - correct answer ✔✔when only one party has mistaken the
fact of a contract --> as a result, it will not permit the mistaken party to rescind the contract
- general rule: a unilateral mistake does not give the mistaken party any right to relief from the
contract; the contract is usually enforceable by court
Exceptions to General Rule of Unilateral Contract (may be rescinded if) - correct answer ✔✔-
Other party to the contract knows or should have known (if one party made the mistake of fact,
and the other person knew they were mistaken or should have known they were mistaken)
- Mistake was due to an inadvertent mathematical mistake and was not gross negligence (type
of clerical error)
Mistake of Value - correct answer ✔✔contract cannot be voided
, Fraudulent Misrepresentation - correct answer ✔✔when one party intentionally induces the
other party to rely or act upon false assertion of fact --> as a result, contract is voidable by
innocent party
Misrepresentation of fact - correct answer ✔✔misrepresentation of fact that induce the
innocent party to enter into contract
Requirements-
1. Intentional misrepresentation of material fact
2. Reliance
3. Injury
Undue Influence - correct answer ✔✔when one party takes advantage of another person's
mental, emotional, or physical weakness and somehow unduly persuades that person to enter
into a contract
--> as a result, contract is voidable by innocent party
Duress - correct answer ✔✔when a party threatens to do some wrongful act against another
party unless they enter into the contract
--> as a result, contract is voidable by innocent party
(ex. blackmail)
Statute of Frauds - correct answer ✔✔(writing requirement)
state laws that require a certain type of contract be in writing and yet the parties ignore that
requirement
Most common contracts that have to be in writing: - correct answer ✔✔- contracts involving
interest in land (sale of land
- contracts that can't be performed within 1 year
