UGBA 175 Chapter Notes - Chapter 11: Rescission, Meeting Of The Minds, Uberrima Fides
12 Sep 2016
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Consent must be (1) knowingly and (2) voluntarily given. [def] unfair persuasion of a person by a party generally in a dominant position based upon a confidential relationship (ex. principal-agent, guardian-war, trustee- beneficiary, attorney-client, physician-patient) Weakness/ dependence of person persuaded is strong indicator of the fairness/ unfairness of the persuasion. Important factors in determining fairness: (1) did the dominant party make full disclosure of all known relevant information, (2) was the consideration adequate, (3) did the dependent party receive competent and independent advice before completing the transaction. In every relationship involving a confidential relationship, the dominant party is held to utmost good faith in his dealings with others. Fraud (1) fraud in the execution: rare, misrepresentation as to the nature of the contract, renders contract void (2) fraud in the inducement (fraud/ deceit) a. [def] assertion not in accord with facts, made though positive statement or conduct that misleads.
