Business Law Chapter 6 Genuine Agreement

15 Unilateral error Unilateral error – an error made by one of the contracting parties. Normally, one cannot get out of the contract The value of an error in the type of agreement – people are bound by the signing of a written agreement, even if they have not read it. Error in the identity of the parties – May create an invalid contract 2 Real agreement – Offer + Acceptance; Provided that the other three elements exist Sometimes the agreements turn out to be defective. 13 Innocent Misrepresentation Example: Fred bought an ATV from Matt, a friend at school. Matt said he thought the bike didn`t need repairs. After a weekend trip, Fred discovered that the rear wheel was strongly misdirected. Fred could cancel the deal and get his money back. He is not entitled to damages because Matt really believed the bike was in good condition. 21 Economic constraint Economic constraint – Threats to a person`s business or income that induce him or her to enter into a contract without genuine consent.

Example: a company threatens not to deliver a shipment if the buyer refuses to pay a higher price than the agreed price. Since insider training concerns the purchase or sale of a security, in breach of a fiduciary duty or other relationship of trust, during the holding. A justification for secret trusts based on fraud is considered the reason why the secret agent should not take the deceased`s property as an absolute gift. Majority opinion Motivation: DUNN, Justice A. Rule: I. Theory of no-fault liability, commercial sellers of used products are not considered abs. Rule 10b-5 prohibits any person from providing a false indication or omission of essential facts concerning the purchase or sale of securities. The illegal act was.

22 Unlawful influence Unlawful influence – unjust and inappropriate persuasive pressure exerted by a person in a relationship of trust with another person. Example: an elderly woman sells 150,000 lands to her son for 50,000. Before the land is actually transferred, the mother learns that her son plans to sell the land to a client for the construction of an apartment building. If the mother decides not to go through the sale, her son cannot sue her because he has taken advantage of the trust she has in him. The test is called the causality determination test. (Cork v Kirby MacLean Ltd (1952) 2 All ER 402) “but for” test and always ask for damage. 9 A false presentation, on which it has indeed been relied, must be based on false information in order to be able to bring legal proceedings. Example: If the person requesting the Mustang was accompanied by a vintage car expert and the expert informs them that the car is not the year the seller claims and that it is worth much less than they are asking for, they cannot file a complaint because they have not really relied on the false information. This is especially true, given the more lenient attitude toward the doctrine of a “lost opportunity” in the commercial realm. This raises the question of how to quantify.

4 Fraud – Intentional deception to obtain an unfair or illegal profit. . . .