Study for the Bar in Your Car

Contract Law - Defenses and Contract Enforceability


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Contracts can seem solid once formed, but certain defenses can render them unenforceable,. The Study for the Bar in Your Car podcast tackles these crucial concepts to help you identify when a contract might not hold up in court!

This episode is your guide to navigating situations where a seemingly valid agreement can be challenged. We start with lack of capacity, focusing on minors (or infants) and individuals with mental incapacity,,. Contracts made by these parties are generally voidable by them, meaning they can choose to disaffirm the agreement, though they remain liable for the reasonable value of necessaries,,.

Next, we dissect improper pressure: Duress involves coercion, often through physical force (making the contract void) or, more commonly, improper threats (like harm or wrongful lawsuits) that leave no reasonable alternative, rendering the contract voidable,,,,. Undue influence focuses on unfair persuasion, frequently exploiting relationships of trust or dominance to overcome someone's free will, making the contract voidable,,,,.

We also explore Mistake, distinguishing between mutual mistake by both parties regarding a basic assumption (making the contract voidable) and unilateral mistake by only one party (usually not a defense unless the other party knew or should have known about it, or it's a clear clerical error),,. Sometimes, a mistake in the written document allows for reformation to reflect the true agreement,.

Misrepresentation (a false statement of fact) and Fraud (intentional misrepresentation) can make a contract voidable if the statement was material and the innocent party justifiably relied on it,,,,. Even careless (negligent) misrepresentations can be a defense,,.

Finally, we tackle major defenses like Illegality (courts won't enforce contracts with illegal subject matter, consideration, or purpose), Unconscionability (when terms are so harsh or the bargaining process so unfair that the contract is shocking to the conscience),,,,, and the critically important Statute of Frauds,,,. The Statute of Frauds requires certain contracts (like those for land, those that cannot be performed within one year, and UCC contracts for the sale of goods worth $500 or more) to be in a signed writing to be enforceable,,,,. For UCC goods, the writing must specify the quantity and is only enforceable up to that amount,,,,,. We break down key exceptions that can make oral contracts enforceable despite the Statute of Frauds,,,,,. Note that non-compliance makes a contract unenforceable at the option of the party being sued – it's a defense they must raise,,.

Mastering these defenses is essential for spotting issues and crafting strong arguments on your bar exam. Tune into Study for the Bar in Your Car for a clear, comprehensive breakdown! Listen and subscribe to build your confidence!

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Study for the Bar in Your CarBy Angela Rutledge, LLM, LLB

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