Genuine Agreement. Chapter 6. Mr. Sherpinsky’s Business Law Class. Chapter Overview. How certain types of mistakes and incorrect representation of facts can lead to the voiding of a contract The difference between unilateral and bilateral mistakes
Mr. Sherpinsky’s Business Law Class
Can the restaurant owner prosecute the antique dealer for fraud?
Five elements must exist to prove fraud:
Example 1, pg. 130
Could Jeff pursue a claim of false representation?
Example 2, pg. 131
Could he win a lawsuit against Johnson?
Example 3, pg. 131
If Ed still buys it anyway, could he win a lawsuit for fraud?
Example 4, pg. 132
Is Fred entitled to damages?
If after selling the item an unknown defect surfaces, would the buyer be entitled to damages?
Mistake, Duress, and Undue Influence
Chapter 6, Section 2
Is the company bound to the bid?
Genevieve Sands sent a letter offering baby-sitting services at a certain rate to Jill Gomez, a mother of toddlers in the neighborhood.
The letter carrier mistakenly delivered it to another Jill Gomez, who happened to live across town and also had children.
This Jill Gomez liked the offer and accepted the deal.
Is the contract voidable?
Mistake as to the possibility of performance
**Generally, you can not get out of a contract because of a unilateral mistake, but you can get out of a contract because of a bilateral mistake.**
Mistake as to the subject matter
Ellery Weimer agreed to sell Alvin McCormick 5 vacant lots on Indiana Ave in Parkersburg.
McCormick refused to go through with deal after discovering the lots where on a different Indiana Ave in Pakersburg then he original thought.
WHAT DO YOU THINK?
Occurs when a person uses unfair and improper persuasive pressure to force another person to enter into an agreement