Law 5110 Study Guide - Quiz Guide: Caveat Emptor, Unconscionability, Fiduciary
Document Summary
Form of contract is central to contract formation. Binding implies a certain loss" of freedom. Giving up" of freedom must be voluntary and with full knowledge. If giving up" of freedom is not voluntary or with full knowledge, the consent" of the party in error is defective". The courts will not enforce an agreement that is based on defective consent party in error can invalidate (avoid) contract. An agreement based on defective consent may be void ab initito or voidable. Pecl: party in error may avoid the contract for: Art 4:103 106 fundamental mistake. Art 4:109 excessive benefit or unfair advantage. This chapter does not deal with invalidity arising from illegality, immorality or lack of capacity. Art 15:101 contrary to fundamental principles. Focus us to protect the party who believes there was a contract unless there is. Mistake (see also sec 151 158 res) Misrepresentation (see also sec159 167 res) Undue influence (see also sec 177 res)
