BUS 410 Study Guide - Midterm Guide: Scienter, Odometer, Consumer Protection
29 Mar 2016
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Valid contract: enforceable, unenforceable (statue of frauds, statue of limitations, contracts discharged during bankruptcy), or voidable (one party has the option of avoiding or enforcing the contractual obligation) Unenforceable = a valid contract, but cannot be enforced because of a legal defense. Voidable: one of the parties can get out of it. Lack of genuiness of assent: (a) fraud, (b) bilateral mistake of fact (with unilateral exception, (c) duress or undue influence. Lack of capacity of the parties: minors, no capacity, insane (a) fraud. Fraudulent misrepresentation voidable contract (no genuiness of assent) Caveat emp tor buyer beware court doesn"t save people when they"re just stupid: ex: buying a used car and you don"t ask any questions. 2 types of fraud: (1) constructive fraud concealing something that they should"ve told/not easily discoverable by the person on their own. Otherwise, it"s the burden of the buyer to ask/research: this is the common law rule.
