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Terms Definitions Terms Definitions A question as to the existence of subject matter creates this contract flaw One party indicates to the other that they will not perform their contractual obligations The courts will generally not allow a party to "snap up a bargain" when this type of Only parties to the contract are bound by it contract flaw is evident Taking advantage of a vulnerable person's situation is this type of contract flaw. In the absence of other evidence to the contrary, simply showing that the relationship exists is enough for court to allow victim to escape the contract. An assignee can enforce a claim directly (if certain criteria are met) without Rectify Non Est Factum |Privity of contract Unilateral Innocent involving the assignor when this exists. Mistake Misrepresentation Shared Repudiation Presumption of Unconscionablety Duress A person knowingly and intentionally misleads another and induces him/her (common] undue influence to enter into a contract. mistake Novation NonDisclosure Negligent Statutory Fraudulent False impression or failure to reach consensus as to fundamental element or Misrepresentation Assignment Misrepresentation term in a contract Mistake Rescission When a new contract is created by substituting a new party for one of the original parties to the original contract and with the agreement of all. This type of contract flaw exists when one party threatened or was actually. violent with another party to induce him/her to enter a contract. Misleading another person without knowing, or honestly believing that the facts are true. Court corrects the written wording of a shared mistake in the contract This type of misrepresentation occurs where a duty of good faith between parties is owed and there is an obligation to provide relevant and pertinent information Returning the parties to the position they were in before the contract established Where the person making the misleading statement believes it to be true but has been careless in that belief Where a party is not bound by terms of a document because he/she didn't stand the nature of the document signed "t is not my art." Focus 8:2