Reviewing Important Points

1 An offer and its acceptance must be made with genuine assent.

2 Fraud exists when deliberate false representation or concealment of a material fact is intended to and does influence the action of another, causing injury. Contracts induced by fraud are voidable by the victim.

3 Duress consists of either coercion or illegal imprisonment, which induces the victim to make an unwanted contract. Such contracts are voidable by the victim.

4 Undue influence exists when one person, because of trust, confidence, or authority, uses an overpowering influence over another, depriving the victim of freedom of will in making a contract. The contract is voidable by the victim.

5 Generally a unilateral mistake of fact does not affect a validity of a contract.

6 Generally a mutual (bilateral) mistake of material fact (as to identity or existence of the subject matter) makes the agreement void. Sometimes, if the mistake concerns the applicable law, the contract may be valid.

LESSON 8 RIGHTS AND DUTIES UNDER A CONTRACT