Conduct invalidating assent law
c) Assumption of risk: Where one or more parties assume the risk that a mistake may have been made, the law cannot offer a remedy.
Example: Buyer of a used car does so in “as is” condition.
If a car dealer says this car will get 30 miles to a gallon, this claim must be accurate.
On the other hand, if the dealer says, “This is the best looking car around,” this is simply the dealer’s opinion. 5) Predictions: In general, predictions are considered to be non-factual.
Example: A fan approaches Michael Jordan with a piece of paper and asks for his autograph. Elements of this fraud: 1) A false representation is made 2) The false representation is of a fact 3) The false representation is material to the agreement 4) The false representation is made with knowledge that the representation is false 5) The offeree relies upon the false representation in entering into the contract Example: Bill offers to sell his car to Jane for ,000. Concealment: Concealment takes place when a party deliberately takes steps to conceal a material fact.
The paper Michael signed is a contract in which he promised to pay the person a million dollars. Fraud in the inducement: Fraud in the inducement takes place when a person is persuaded to enter into a contract as a result of a material misrepresentation. He tells Jane that the car has only 20,000 miles on it. This is different from misrepresentation which involves a false statement. Example: A car dealer uses Bondo and a quick paint job to conceal the fact that the car he is trying to sell was damaged in a serious accident. Misrepresentation: Misrepresentation takes place when a statement that is known to be contrary to the facts is made.
b) Unilateral mistake: Where only one party has made a mistake, the general rule is that the resulting contract is valid.
6) Elements of misrepresentation: a) Material: When misrepresentation is being alleged, it must be shown that the misrepresented fact is material.
A misrepresentation is material if the fact would persuade a reasonable person to enter into the contract.
2) Obligation to break the silence: In some cases, a party is obligated to disclose information that only he or she may have regarding the subject of the contract.
These involve cases where the information is fundamental to the contract, the facts would not have been discovered through ordinary inspection, and good faith dealing would require that the information be disclosed.