LAW 122 Lecture Notes - Lecture 10: Fiduciary, Unconscionability, Risk Management
4 Feb 2016
School
Department
Course
Professor
Document Summary
Misrepresentation is a false statement of an existing fact that causes recipient to enter into a contract. May be actionable if it induced (encouraged, provoked) a contract. General rule: contract will not be enforced. We treat the contract as though it never existed; parties relieved of all. Usually accompanied by restitution: a giving back and a taking back their obligations. Evidently, was not induced to enter the contract. Misrepresentation, but still no undoing the contract. Third party rights involved: incapacity to contract. Voiding a contract --> avoid: escape the consequences of. There are groups with limited power to give consent. Examples: minors, mentally incapacitated people, intoxicated people: unfairness during bargaining. Problems with the circumstances around the creation of contract: duress. Problems with the relationship between the parties: undue. Problems with the agreement itself: unconscionability: duress: illegitimate threat of harm. Threat of physical harm to party or loved one. Threat to detain, damage, or destroy goods.
