Text 1 What Makes an Agreement Void or Voidable

A valid (legally effective) offer and acceptance generally result in an enforceable contract. However, sometimes the agreement may be void or voidable because one of the parties lacked capacity to contract or failed to give consideration. The contract also may be void or voidable because one of the parties failed to genuinely assent to the agreement. Genuine assent exists when consent is not clouded by fraud, duress, undue influence, or mistake. Generally, if genuine assent is lacking, the victim may cancel or disaffirm the contract.

Disaffirmance is a refusal to carry out or comply with the terms of a voidable contract, without any liability to pay damages. Disaffirmance is permitted in certain cases when the offer and acceptance were not given freely and voluntarily in a spirit of honesty and fairness. If a court decides that a person who used reasonable care and judgment was nevertheless deceived or misled about an important fact, that person may disaffirm (or avoid) the contract. A person who was compelled to enter into a contract against his or her free will may also disaffirm.

Vocabulary

void недействительный, не имеющий силы

voidable 1 могущий быть аннулированным 2 оспоримый

to assent дать согласие, соглашаться

consent согласие

genuine assent подлинное согласие

fraud обман; мошенничество, жульничество

duress [djυə′res] принуждение, давление

to disaffirm аннулировать, расторгать (соглашение)

disaffirmance отмена, взятие обратно согласия; отказ в подтверждении

to comply with the terms выполнить условия

to compel заставлять, вынуждать, принуждать

to mislead вводить в заблуждение

to deceive обманывать, вводить в заблуждение

Text 2 Fraud

The basis of fraud is false representation or concealment of a material fact. However, not every misrepresentation or concealment is a fraud. All of the following elements must be present for fraud to exist: