Notes

Reality of Consent
Contract= Offer + Acceptance + Real consent (If missing, it can result the contract to be voidable.)
-In order for consent to be real, it must be proven to be "knowing" and "voluntary."
-Misrepresentation: one's consent is not knowing, the non mistaken party relies on this misrepresentation.
-All 6 cases involving the reality of consent involves the right to rescind a contract, to hit the rewind button.
-Scienter: Knowledge of wrong doing (Fraud)
-Fraud v Misrepresentation
Intent No Intention to deceive
-Concealment, actively hiding facts. The act of hiding stuff deliberately.
If proven that there was a fraud, the remedy is recession and compensation for tort damages.
-Plain O' Fraud is committed through one's words.
Concealment v Nondisclosure
Always Fraud Sometimes Fraud, and sometimes it's not fraud.
Actively Hiding Not always intentionally hiding, not voluntary.
Not knowing that you had a legal duty to disclose something=Fraud
-Remedies
Misrepresentation- recession Fraud-Tort Damages/Rescission
*Punitive damages are damages not the same as tort damages, to punish the one committing the criminal act.
*Voidable*
-In California, two remedies are considered, both recession and tort damages.
-Some courts involving cases within this area may say the word "voiding" but please keep in mind, that these contracts are VOIDABLE and not void.
-In New York, there's Caurt emptor, that is the rule that is the buyer's responsibility to investigate what he is buying.
In California, the seller is in charge of investigating.
-In NY, states demand sellers to disclose information regarding paranormal activity.
-Grossly Diligent->Bad Faith
Fiduciaries
-Recognized legal relationships of trust and confidence.
-Demands a higher duty to disclose information.
-Avoid opinions, opinions from a trust worthy partner can result into it becoming a fact.
-Higher standards of Accountability
Two Tests to prove an Unilateral Mistake
-Buyer new of the mistake, caused it or was aware of it. This allows the mistaking party to be able to rescind. "the slimy"
-2nd test is unconscionable (If the amount exceeds 7% of what was lost, the seller has the right to claim it back)