Business Law - Chapter 7

Without

legal effect

• valid

• void

• voidable

• genuine assent

Legally binding and enforceable

• valid

• void

• voidable

• fraud

Important

facts that influence decisions about a contract.

• material facts

• genuine assent

• unilateral mistake

• fraudulent misrepresentation

Statements made that the seller is

unaware are untrue.

• mutual mistake

• fraudulent mistake

• innocent misrepresentation

• unilateral mistake

The misrepresentation with the two additional elements of the misrepresentation must be intentional or reckless and the misrepresentation or concealment must injure.

• mutual mistake

• fraudulent misrepresentation

• unilateral mistake

• fraud

If

the injured party desires, that party can cancel the contract.

• genuine assent

• void

• valid

• voidable

The seller knows the statement is

untrue.

• undue influence

• fraudulent misrepresentation

• mutual mistake

• duress

True

and complete agreement.

• genuine assent

• material facts

• valid

• voidable

When both parties have an incorrect belief about an important fact or the law related to the contract.

• innocent misrepresentation

• fraudulent misrepresentation

• mutual mistake

• undue influence

When one party holds an incorrect belief about facts or laws related to the contract.

• mutual mistake

• unilateral mistake

• innocent misrepresentation

• duress