MGMT 108 Chapter Notes - Chapter 15: Fiduciary, Punitive Damages, Undue Influence
Document Summary
Unilateral mistake- the mistaken party is generally bound by the contract unless the other party knows or should have known of the mistake or the mistake is a math error. Fraud affects the authenticity of an innocent party"s consent and thus can normally be avoided because that party didn"t voluntarily consent to its terms. Elements of fraudulent misrepresentation: misrepresentation of a material fact: can be by words or actions (like when a party takes specific action to conceal a fact that is material to the contract) Statements of opinion and representations of future facts (predictions) generally are not subject to claims of fraud. When a na ve purchaser relies on an opinion from an expert, the innocent party may be entitled to rescission or reformation. Misrepresentation of a law ordinarily doesn"t entitle a part to relief. Usually neither party has a duty to come forward and disclose facts unless asked about.
