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Business law conduct invalidating assent
If you are involved in a business agreement, one of the first things to determine is whether the promise or agreement at issue will be considered an enforceable contract under the law.While contracts usually involve promises to do something (or refrain from doing something), not all promises are contracts.
If there is a valid defense to a contract, it may be voidable, meaning the party to the contract who was the victim of the unfairness may be able to cancel or revoke the contract.
In some instances, the unfairness is so extreme that the contract is considered void, in other words, a court will declare that no contract was ever formed.
If there is a gross inequality of bargaining power, so the weaker party to the contract has no meaningful choice as to the terms, and the resulting contract is unreasonably favorable to the stronger party, there may be a valid claim of unconscionability.
A court will also look at whether one party is uneducated or illiterate, whether that party had the opportunity to ask questions or consult an attorney, and whether the price of the goods or services under the contract is excessive. Public Policy and Illegality Rather than protecting the parties to a contract as other contract defenses do, the defenses of illegality and violation of public policy seek to protect the public welfare and the integrity of the courts by refusing to enforce certain types of contracts.
Talk to An Attorney While a contract may appear valid on its face, there are times that it's not enforceable under the law.
If you have concerns that your contract may not be enforceable under the law, or you need help drafting a contract for your business, it's a good idea to consult with a skilled business attorney to ensure that your contract is valid.When considering whether there is “mutual assent”, sometimes called a “meeting of the minds” which is required for a contract to be formed, one of the issues is the existence of conduct that invalidates assent. What are the 4 requirements for a binding promise or agreement? What is another way of expressing the idea of “mutual assent”? Conduct Invalidating Assent: Duress Another of the important intentional torts is Fraud (Intentional Misrepresentation). That being said, the tort of fraud/misrepresentation requires: on December 29, 2010 at pm Leave a Comment Tags: conduct that invalidates assent, contract formation, Contracts, Fraud, Intentional Torts, Linked In, Misrepresentation, Paralegal Education, Paralegal Essentials, Paralegals, Tort Law What did you learn about Contract Law so far? Try to answer without looking at the earlier posts. A misrepresentation which leads another to believe in a condition that is different form the condition that actually exists is sufficient to support liability. This is usually accomplished by a false or incorrect statement. When the terms of a contract are oppressive or when the bargaining process or resulting terms shock the conscience of the court, the court may strike down the contract as unconscionable.A court will look at a number of factors in determining if a contract is unconscionable.Enforcement and Contract Defenses If a court determines that a contract exists, it must decide whether that contract should be enforced.There are a number of reasons why a court might not enforce a contract, called defenses to the contract, which are designed to protect people from unfairness in the bargaining process, or in the substance of the contract itself.There must be a bargained for exchange of promises, meaning that something of value must be given in return for a promise (called "consideration").In addition, the terms of a contract must be sufficiently defined for a court to enforce them.