1 Summary of California Law (10th), Contracts

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<d1.o n="I. ">INTRODUCTION

<d2.o n="A. ">Nature of Contract.

<d3.o n="1. ">Definitions.

<d4.o n="(a) " sec="1] ">Contract.

<d4.o n="(b) " sec="2] ">Related Terms.

<d3.o n="2. ">Elements.

<d4.o n="(a) " sec="3] ">In General.

<d4.o n="(b) " sec="4] ">Parties.

<d3.o n="3. " sec="5] ">Other Transactions or Relationships Distinguished.

<d2.o n="B. ">Modern Law of Contract.

<d3.o n="1. " sec="6] ">Restatement.

<d3.o n="2. " sec="7] ">Texts and Practice Works.

<d3.o n="3. " sec="8] ">BAJI Instructions.

<d3.o n="4. " sec="9] ">CACI Instructions.

<d3.o n="5. " sec="10] ">New Theories.

<d2.o n="C. ">Electronic Transactions.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="11] ">Uniform Act.

<d4.o n="(b) " sec="12] ">Construction.

<d4.o n="(c) " sec="13] ">Definitions.

<d4.o n="(d) " sec="14] ">Applicability.

<d4.o n="(e) " sec="15] ">Attribution of Electronic Record or Signature.

<d4.o n="(f) " sec="16] ">Change or Error in Electronic Record.

<d4.o n="(g) " sec="17] ">Sending and Receiving Records.

<d3.o n="2. ">Agreement and Legal Effect.

<d4.o n="(a) " sec="18] ">Agreement To Transact Electronically.

<d4.o n="(b) " sec="19] ">Legal Effect or Enforceability of Electronic Record, Signature, or Contract.

<d4.o n="(c) " sec="20] ">Automated Transactions.

<d3.o n="3. ">Electronic Satisfaction.

<d4.o n="(a) " sec="21] "> Requirement of Writing.

<d4.o n="(b) " sec="22] "> Requirement of Notarization and Signature Under Penalty of Perjury.

<d4.o n="(c) " sec="23] "> Requirement To Retain Records.

<d3.o n="4. " sec="24] ">Notice of Right To Cancel.

<d1.o n="II. ">CAPACITY OF PARTIES.

<d2.o n="A. " sec="25] ">General Rule.

<d2.o n="B. ">Minors.

<d3.o n="1. ">Who Are Minors.

<d4.o n="(a) " sec="26] ">Age of Majority: 18 years.

<d4.o n="(b) " sec="27] ">Misrepresentation of Age.

<d3.o n="2. ">Void Contracts.

<d4.o n="(a) " sec="28 ] ">Delegation of Power.

<d4.o n="(b) " sec="29] ">Contract Relating to Real Property.

<d4.o n="(c) " sec="30] ">Other Void Contracts.

<d3.o n="3. ">Voidable Contracts.

<d4.o n="(a) ">Disaffirmance.

<d5.o n="(1) " sec="31] ">Statutory Right and Methods.

<d5.o n="(2) " sec="32] ">No Need To Restore Consideration.

<d4.o n="(b) " sec="33] ">No Recovery From Bona Fide Purchaser.

<d3.o n="4. ">Binding Contracts.

<d4.o n="(a) ">Contracts Authorized by Statute.

<d5.o n="(1) " sec="34] ">Contract for Necessaries.

<d5.o n="(2) " sec="35] ">Contract for Attorneys''&apos; Fees.

<d5.o n="(3) ">Contracts of Creative Artist, Entertainer, or Athlete.

<d6.o n="(aa) " sec="36] ">Scope of Statute.

<d6.o n="(bb) " sec="37] ">Court Approval.

<d5.o n="(4) ">Contracts for Medical or Dental Care.

<d6.o n="(aa) " sec="38] ">Nature of Statutes.

<d6.o n="(bb) " sec="39] ">Unwed Pregnant Minors.

<d6.o n="(cc) " sec="40] ">Married Minors.

<d6.o n="(dd) " sec="41] ">Minors in Military Service.

<d6.o n="(ee) " sec="42] ">Minors Exposed to Communicable Disease.

<d6.o n="(ff) " sec="43] ">Minor Raped or Sexually Assaulted.

<d6.o n="(gg) " sec="44] ">Minor With Drug or Alcohol Problem.

<d6.o n="(hh) " sec="45] ">Minor Needing Mental Health Treatment.

<d6.o n="(ii) " sec="46] ">Minor of 15 Living Apart.

<d5.o n="(5) " sec="47] ">Miscellaneous Contracts.

<d5.o n="(6) " sec="48] ">Emancipated Minors.

<d4.o n="(b) " sec="49] ">Parent'&apos;s Agreement To Arbitrate.

<d2.o n="C. ">Persons of Unsound Mind.

<d3.o n="1. " sec="50] ">In General.

<d3.o n="2. " sec="51] ">Capacity To Contract.

<d3.o n="3. ">Void Contracts.

<d4.o n="(a) " sec="52] ">Insanity Without Adjudication.

<d4.o n="(b) ">Adjudication of Insanity.

<d5.o n="(1) " sec="53] ">In General.

<d5.o n="(2) " sec="54] ">Conservatee.

<d3.o n="4. " sec="55] ">Voidable Contracts.

<d3.o n="5. ">Intoxication or Other Temporary Condition.

<d4.o n="(a) " sec="56] ">Intoxication.

<d4.o n="(b) " sec="57] ">Manic Depressive Psychosis.

<d2.o n="D. " sec="58] ">Persons Deprived of Civil Rights.

<d1.o n="III. ">CONFLICT OF LAWS.

<d2.o n="A. ">In General.

<d3.o n="1. " sec="59] ">Nature of Conflicts Rules.

<d3.o n="2. " sec="60] ">Earlier Strict Rules.

<d3.o n="3. " sec="61] ">Approach of Restatement 2d.

<d3.o n="4. " sec="62] ">California Follows Restatement 2d.

<d3.o n="5. " sec="63] ">Governmental Interest Approach.

<d2.o n="B. ">Validity and Effect of Contract.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="64] ">Importance of Contacts.

<d4.o n="(b) " sec="65] ">Rule of Validation.

<d3.o n="2. ">Law Chosen by Parties.

<d4.o n="(a) ">Modern View.

<d5.o n="(1) " sec="66] ">In General.

<d5.o n="(2) " sec="67] ">Commercial Code and Restatement 2d.

<d5.o n="(3) " sec="68] ">Distinction: Contracts Involving Transaction of $250,000 or Over.

<d4.o n="(b) ">Illustrations.

<d5.o n="(1) " sec="69] ">Usury.

<d5.o n="(2) " sec="70] ">Statute of Limitations.

<d5.o n="(3) " sec="71] ">Breach of Duties Under Contract.

<d5.o n="(4) " sec="72] ">Deficiency Judgment.

<d5.o n="(5) " sec="73] ">Unfair Competition or Restraint of Trade.

<d3.o n="3. ">Where No Choice Made.

<d4.o n="(a) ">Place of Contracting.

<d5.o n="(1) " sec="74] ">Significance of Factor.

<d5.o n="(2) " sec="75] ">What Constitutes Place of Contracting.

<d4.o n="(b) " sec="76] ">Place of Performance.

<d4.o n="(c) " sec="77] ">Location of Subject Matter.

<d4.o n="(d) " sec="78] ">Domicile and Related Factors.

<d3.o n="4. " sec="79] ">Public Policy Exception.

<d3.o n="5. " sec="80] ">Where Applicable Law Not Ascertainable.

<d3.o n="6. ">Particular Issues.

<d4.o n="(a) " sec="81] ">Capacity To Contract.

<d4.o n="(b) ">Formalities of Execution.

<d5.o n="(1) " sec="82] ">In General.

<d5.o n="(2) " sec="83] ">Statute of Frauds.

<d4.o n="(c) " sec="84] ">Essential Validity and Invalidating Factors

<d4.o n="(d) ">Illegality.

<d5.o n="(1) ">Traditional Rule.

<d6.o n="(aa) " sec="85] ">Place of Contracting.

<d6.o n="(bb) " sec="86] ">Place of Performance.

<d5.o n="(2) " sec="87] ">Restatement Rules.

<d5.o n="(3) " sec="88] ">Usury.

<d5.o n="(4) " sec="89] ">Intentional Violation of Foreign Law.

<d4.o n="(e) ">Interpretation and Construction.

<d5.o n="(1) " sec="90] ">California Cases and Statutes.

<d5.o n="(2) " sec="91] ">Restatement Rules.

<d4.o n="(f) " sec="92] ">Performance.

<d4.o n="(g) " sec="93] ">Recovery for Breach.

<d2.o n="C. ">Assignment.

<d3.o n="1. " sec="94] ">In General.

<d3.o n="2. " sec="95] ">Assignment as Between Assignee and Assignor.

<d2.o n="D. " sec="96] ">Discharge.

<d2.o n="E. ">Particular Contracts.

<d3.o n="1. " sec="97] ">Contracts Involving Land.

<d3.o n="2. " sec="98] ">Contracts Involving Chattels.

<d3.o n="3. " sec="99] ">Other Contracts.

<d2.o n="F. " sec="100] ">Restitution.

<d1.o n="IV. ">CATEGORIES OF CONTRACT

<d2.o n="A. " sec="101] ">Executory and Executed.

<d2.o n="B. ">Express, Implied, and Quasi-Contracts.

<d3.o n="1. " sec="102] ">Express and Implied in Fact Contracts.

<d3.o n="2. " sec="103] ">Quasi-Contract and Implied in Fact Contract Distinguished.

<d3.o n="3. " sec="104] ] ">Statutory Obligations.

<d2.o n="C. ">Unilateral and Bilateral Contracts.

<d3.o n="1. " sec="105] ">Nature and Presumptions.

<d3.o n="2. " sec="106] ">Presumption of Bilateral Contract.

<d3.o n="3. " sec="107] ">Illustrations of Unilateral Contracts.

<d2.o n="D. ">Joint and Several Contracts.

<d3.o n="1. ">Joint and Several Obligations.

<d4.o n="(a) ">Nature and Distinctions.

<d5.o n="(1) " sec="108] ">In General.

<d5.o n="(2) " sec="109] ">Joint and Several Obligation.

<d5.o n="(3) " sec="110] ">Several Obligation.

<d4.o n="(b) " sec="111] ">Performance and Discharge.

<d4.o n="(c) " sec="112] ">Action and Judgment.

<d4.o n="(d) " sec="113] ">Contribution.

<d3.o n="2. " sec="114] ">Joint and Several Rights.

<d2.o n="E. " sec="115] ">Judgment as Contract.

<d1.o n="V. ">FORMATION: MUTUAL CONSENT.

<d2.o n="A. ">Objective Theory.

<d3.o n="1. " sec="116] ">In General.

<d3.o n="2. " sec="117] ">How Consent Manifested.

<d3.o n="3. " sec="118] ">Negligence in Signing or Accepting Instrument.

<d3.o n="4. ">Ignorance of Contractual Nature or Terms of Instrument.

<d4.o n="(a) ">Contractual Terms Apparent to Reasonable Person.

<d5.o n="(1) " sec="119] ">General Rule.

<d5.o n="(2) " sec="120] ">Illustrations.

<d4.o n="(b) ">Contractual Terms Not Apparent.

<d5.o n="(1) " sec="121] ">Test.

<d5.o n="(2) " sec="122] ">Illustrations.

<d4.o n="(c) ">Statutory Requirements.

<d5.o n="(1) " sec="123] ">In General.

<d5.o n="(2) " sec="124] ">Of Translation.

<d2.o n="B. ">Offer.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="125] ">Nature and Effect.

<d4.o n="(b) " sec="126] ">Distinction: Warning or Demand.

<d3.o n="2. ">Offer Not Contemplating Legal Relations.

<d4.o n="(a) " sec="127] ">Jest or Social Engagement.

<d4.o n="(b) " sec="128] ">Statement of Moral Obligation.

<d4.o n="(c) " sec="129] ">Sham Instrument.

<d3.o n="3. ">Preliminary Negotiations and External Conditions Precedent.

<d4.o n="(a) ">Call for, or Attempt To Induce, Offer.

<d5.o n="(1) " sec="130] ">Invitation To Make Offer.

<d5.o n="(2) " sec="131] ">Solicitation by Auctioneer.

<d5.o n="(3) " sec="132] ">Quotation or Estimate.

<d4.o n="(b) " sec="133] ">Formal Writing Contemplated.

<d4.o n="(c) " sec="134] ">Terms Incomplete or Writing Required.

<d4.o n="(d) " sec="135] ">Approval of Others Contemplated or Required.

<d4.o n="(e) " sec="136] ">Other Conditions Precedent.

<d3.o n="4. ">Certainty of Offer.

<d4.o n="(a) ">In General.

<d5.o n="(1) " sec="137] ">Requirement of Certainty.

<d5.o n="(2) " sec="138] ">Promises Held Uncertain.

<d5.o n="(3) " sec="139] ">Promises Held Certain.

<d4.o n="(b) ">Reasonable Interpretation of Nontechnical Language.

<d5.o n="(1) " sec="140] ">Rule of Liberal Construction.

<d5.o n="(2) ">Illustrations.

<d6.o n="(aa) " sec="141] ">Nature and Quality of Performance.

<d6.o n="(bb) " sec="142] ">Consideration or Price.

<d6.o n="(cc) " sec="143] ">Duration of Contract.

<d5.o n="(3) " sec="144] ">Inquiry into Purpose of Contract.

<d5.o n="(4) " sec="145] ">Uncertainty Cured by Performance.

<d4.o n="(c) ">Matters Left to Future Agreement.

<d5.o n="(1) " sec="146] ">Minor or Nonessential Detail.

<d5.o n="(2) ">Essential Element Reserved: No Contract.

<d6.o n="(aa) " sec="147] ">General Rule.

<d6.o n="(bb) " sec="148] ">Distinction: Contract To Negotiate Agreement.

<d6.o n="(cc) " sec="149] ">Terms of Renewal Lease.

<d6.o n="(dd) " sec="150] ">Price of Stock.

<d6.o n="(ee) " sec="151] ">Manner of Payment.

<d5.o n="(3) ">Essential Element Reserved: Contract Enforced.

<d6.o n="(aa) " sec="152] ">Terms of Lease.

<d6.o n="(bb) " sec="153] ">Price of Goods or Stock.

<d6.o n="(cc) " sec="154] ">Promise To Reach Agreement on Placement of Former Employees.

<d5.o n="(4) " sec="155] ">Changes in Building Contract.

<d3.o n="5. ">Termination of Offer.

<d4.o n="(a) " sec="156] ">In General.

<d4.o n="(b) " sec="157] ">Lapse of Prescribed or Reasonable Time.

<d4.o n="(c) " sec="158] ">Death or Incapacity of Offeror or Offeree.

<d4.o n="(d) ">Revocation by Offeror.

<d5.o n="(1) " sec="159] ">In General.

<d5.o n="(2) " sec="160] ">When Revocation Becomes Effective.

<d5.o n="(3) " sec="161] ">Indirect Revocation: "Reliable Information.

<d5.o n="(4) " sec="162] ">General Offer to Public.

<d4.o n="(e) " sec="163] ">Rejection or Counteroffer by Offeree.

<d3.o n="6. ">Revocability.

<d4.o n="(a) ">Offeror'&apos;s Right To Revoke.

<d5.o n="(1) " sec="164] ">General Rule of Revocability.

<d5.o n="(2) " sec="165] ">Exceptions.

<d4.o n="(b) ">Offer of Unilateral Contract.

<d5.o n="(1) " sec="166] ">Rule and Theories.

<d5.o n="(2) " sec="167] ">Is the Offeree Bound?

<d3.o n="7. ">Option.

<d4.o n="(a) " sec="168] ">Nature of Option.

<d4.o n="(b) " sec="169] ">Requisites of Option.

<d4.o n="(c) " sec="170] ">Rejection, Counteroffer, and Death or Incapacity.

<d4.o n="(d) ">Kinds of Options.

<d5.o n="(1) ">Purchase Option.

<d6.o n="(aa) " sec="171] ">In General.

<d6.o n="(bb) " sec="172] ">Right Relates Back.

<d5.o n="(2) " sec="173] ">Other Types.

<d4.o n="(e) ">Time of Exercise.

<d5.o n="(1) " sec="174] ">Option for Fixed Period.

<d5.o n="(2) " sec="175] ">Option Without Fixed Period.

<d4.o n="(f) ">Manner of Exercise.

<d5.o n="(1) " sec="176] ">In General.

<d5.o n="(2) " sec="177] ">Effective on Deposit in Mail.

<d4.o n="(g) ">Distinctions.

<d5.o n="(1) " sec="178] ">Preemption Agreement.

<d5.o n="(2) " sec="179] ">Binding Purchase Agreement.

<d2.o n="C. ">Acceptance.

<d3.o n="1. " sec="180] ">Who May Accept Offer.

<d3.o n="2. ">Acceptor Must Have Knowledge of Offer.

<d4.o n="(a) " sec="181] ">In General: Bilateral Contracts.

<d4.o n="(b) " sec="182] ">Unilateral Contracts.

<d3.o n="3. ">Acceptance Must Be Unqualified.

<d4.o n="(a) " sec="183] ">General Rule.

<d4.o n="(b) " sec="184] ">Grumbling Acceptance and Implied Qualifications.

<d3.o n="4. ">Effect of Qualified Acceptance.

<d4s n="(a) " sec="185] ">In General.

<d4.o n="(b) " sec="186] ">Exception for Sale of Goods.

<d3.o n="5. ">Acceptance Must Be Communicated.

<d4.o n="(a) " sec="187] ">Necessity of Communication.

<d4.o n="(b) ">Methods of Communication.

<d5.o n="(1) " sec="188] ">In General.

<d5.o n="(2) " sec="189] ">Prescribed Manner or Reasonable Manner.

<d5.o n="(3) " sec="190] ">Acceptance Improperly Dispatched.

<d5.o n="(4) ">Mail or Telegraph.

<d6.o n="(aa) " sec="191] ">In General.

<d6.o n="(bb) " sec="192] ">Revocation Prior to Dispatch.

<d4.o n="(c) ">Silence of Offeree.

<d5.o n="(1) " sec="193] ">General Rule: No Acceptance.

<d5.o n="(2) " sec="194] ">Duty To Speak: Previous Relationship or Course of Dealing.

<d5.o n="(3) ">Use of Services, Goods, or Other Consideration.

<d6.o n="(aa) " sec="195] ">Conduct as Acceptance.

<d6.o n="(bb) " sec="196] ">Exception: Unsolicited Merchandise or Services.

<d5.o n="(4) " sec="197] ">Offeree'&apos;s Intention To Accept.

<d5.o n="(5) ">Acceptance by Performance.

<d6.o n="(aa) " sec="198] ">In General.

<d6.o n="(bb) " sec="199] ">Notification to Offeror.

<d3.o n="6. " sec="200] ">Withdrawal of Mailed Acceptance.

<d3.o n="7. " sec="201] ">Waiver of Defect in Acceptance.

<d1.o n="VI. ">FORMATION: CONSIDERATION

<d2.o n="A. ">In General.

<d3.o n="1. " sec="202] ">Requirement of Consideration.

<d3.o n="2. " sec="203] ">Benefit or Detriment.

<d3.o n="3. " sec="204] ">Given Pursuant to Agreement.

<d3.o n="4. " sec="205] ">Value and Adequacy.

<d3.o n="5. " sec="206] ">Presumption of Consideration.

<d3.o n="6. " sec="207] ">Recital of Consideration.

<d2.o n="B. ">What Constitutes Sufficient Consideration.

<d3.o n="1. ">Unilateral Contract: Act or Forbearance.

<d4.o n="(a) ">Acts.

<d5.o n="(1) " sec="208] ">In General.

<d5.o n="(2) " sec="209] ">Acts Not Involving Performance of Work or Services.

<d5.o n="(3) " sec="210] ">Performance of Work or Services.

<d4.o n="(b) " sec="211] ">Forbearance or Giving Up Right.

<d3.o n="2. ">Bilateral Contract: Mutual Promises.

<d4.o n="(a) " sec="212] ">In General.

<d4.o n="(b) " sec="213] ">Extension Agreement.

<d4.o n="(c) " sec="214] ">Composition With Creditors.

<d4.o n="(d) " sec="215] ">Compromise of Disputed Claim.

<d2.o n="C. ">What Constitutes Insufficient Consideration.

<d3.o n="1. " sec="216] ">In General.

<d3.o n="2. " sec="217] ">Past Consideration.

<d3.o n="3. ">Promise To Perform Existing Legal Duty.

<d4.o n="(a) " sec="218] ">Duty Owed to Other Contracting Party.

<d4.o n="(b) " sec="219] ">Duty Owed to Others or Imposed by Law.

<d3.o n="4. ">Compromise or Forbearance of Invalid Claim.

<d4.o n="(a) " sec="220] ">Claim Wholly Invalid.

<d4.o n="(b) " sec="221] ">Valid but Worthless Claim.

<d3.o n="5. ">Moral Obligation.

<d4.o n="(a) " sec="222] ">Traditional Rule.

<d4.o n="(b) ">Departures From Rule.

<d5.o n="(1) " sec="223] ">In General.

<d5.o n="(2) " sec="224] ">Restatement 2d.

<d2.o n="D. ">Mutuality of Obligation.

<d3.o n="1. ">In General.

<d4.o n="(a) " sec="225] ">Nature of Problem.

<d4.o n="(b) " sec="226] ">Restatement 2d.

<d3.o n="2. ">Desire and Needs Contracts.

<d4.o n="(a) " sec="227] ">Desire Contract: Illusory.

<d4.o n="(b) " sec="228] ">Needs or Requirements Contract: Not Illusory.

<d3.o n="3. " sec="229] ">Election To Approve or Modify.

<d3.o n="4. " sec="230] ">Right To Modify.

<d3.o n="5. ">Unqualified Right To Cancel.

<d4.o n="(a) " sec="231] ">Illusory Contract.

<d4.o n="(b) " sec="232] ">Effect of Part Performance.

<d4.o n="(c) " sec="233] ">Effect of Consideration.

<d3.o n="6. ">Restricted Right To Cancel.

<d4.o n="(a) " sec="234] ">Rule and Theory.

<d4.o n="(b) " sec="235] ">Event Restriction.

<d4.o n="(c) " sec="236] ">Notice Restriction.

<d4.o n="(d) " sec="237] ">Act Restriction.

<d3.o n="7. " sec="238] ">Valid Promise Voidable by Law.

<d2.o n="E. ">Where Consideration Is Unnecessary.

<d3.o n="1. ">Revival of Barred Legal Obligation.

<d4.o n="(a) ">Written Promise or Acknowledgment.

<d5.o n="(1) " sec="239] ">Rule and Theory.

<d5.o n="(2) " sec="240] "> Writing.

<d5.o n="(3) " sec="241] ">Unqualified Admission.

<d4.o n="(b) " sec="242] ">Communication to Creditor.

<d3.o n="2. " sec="243] ">Executed Transaction.

<d3.o n="3. ">Promissory Estoppel.

<d4.o n="(a) ">In General.

<d5.o n="(1) " sec="244] ">Nature of Doctrine.

<d5.o n="(2) " sec="245] ">Promise and Reliance.

<d5.o n="(2a) " sec="245A] ">(New) Causation.

<d5.o n="(3) " sec="246] ">Damages.

<d5.o n="(4) " sec="247] ">Distinction: Act Bargained For.

<d4.o n="(b) ">Illustrative Applications.

<d5.o n="(1) " sec="248] ">Promise Not To Foreclose or Forfeit.

<d5.o n="(2) " sec="249] ">Promise To Pay Pension or Bonus.

<d5.o n="(3) " sec="250] ">Subcontractor'&apos;s Bid.

<d5.o n="(4) " sec="251] ">Government Contract Offered to Bidders.

<d5.o n="(5. ) " sec="252] ">Guaranty.

<d3.o n="4. " sec="253] ">Charitable Subscriptions.

<d3.o n="5. " sec="254] ">Stipulations.

<d3.o n="6. " sec="255] ">Premarital Agreements.

<d1.o n="VII. ">REALITY AND FREEDOM OF CONSENT

<d2.o n="A. ">Mistake.

<d3.o n="1. " sec="256] ">Allocation of Risk.

<d3.o n="2. ">Mistake Preventing Mutual Assent: No Contract.

<d4.o n="(a) " sec="257] ">Unilateral Mistake Where Other Party at Fault.

<d4.o n="(b) " sec="258] ">Mutual Mistake: Neither or Both at Fault.

<d4.o n="(c) " sec="259] ">Effect of Negligence.

<d3.o n="3. ">Mistake That Makes Contract Voidable.

<d4.o n="(a) ">Mistake of Fact.

<d5.o n="(1) ">Mutual Mistake as to Basic Fact.

<d6.o n="(aa) " sec="260] ">General Principle.

<d6.o n="(bb) " sec="261] ">What Constitutes Basic Fact.

<d5.o n="(2) ">Unilateral Mistake of Fact.

<d6.o n="(aa) " sec="262] ">In General.

<d6.o n="(bb) " sec="263] ">Restatement.

<d6.o n="(cc) " sec="264] ">Adoption of Second Restatement Unconscionability Rule.

<d6.o n="(dd) " sec="265] ">Other Party'&apos;s Reliance.

<d6.o n="(ee) " sec="266] ">No Relief Against Third Party.

<d6.o n="(ff) " sec="267] ">Contractor'&apos;s Bid.

<d6.o n="(gg) " sec="268] ">Tax Sale.

<d5.o n="(3) ">Negligence of Mistaken Party.

<d6.o n="(aa) " sec="269] ">Relief Denied.

<d6.o n="(bb) " sec="270] ">Excusable Neglect.

<d6.o n="(cc) " sec="271] ">Mixed Mistake of Judgment and Fact.

<d4.o n="(b) ">Mistake of Law.

<d5.o n="(1) " sec="272] ">In General.

<d5.o n="(2) ">Relief Granted.

<d6.o n="(aa) " sec="273] ">Mutual Mistake.

<d6.o n="(bb) " sec="274] ">Unilateral Mistake.

<d5.o n="(3) " sec="275] ">Mistaken Belief in Future Court Decision.

<d3.o n="4. ">Mistake in Writing: Reformation.

<d4.o n="(a) ">In General.

<d5.o n="(1) " sec="276] ">Nature of Remedy.

<d5.o n="(2) " sec="277] ">Waiver of Right.

<d5.o n="(3) " sec="278] ">Court Cannot Make New Contract.

<d4.o n="(b) ">Instruments That May Be Reformed.

<d5.o n="(1) " sec="279] ">In General.

<d5.o n="(2) " sec="280] ">Void or Unenforceable Contract.

<d4.o n="(c) " sec="281] ">Types of Mistake.

<d4.o n="(d) " sec="282] ">Effect of Plaintiff'&apos;s Negligence.

<d4.o n="(e) " sec="283] ">Intervening Rights of Third Persons.

<d3.o n="5. " sec="284] ">Exculpatory Clause Protecting Defendant.

<d2.o n="B. ">Fraud.

<d3.o n="1. " sec="285] ">In General.

<d3.o n="2. ">Actual Fraud.

<d4.o n="(a) " sec="286] ">Elements: Traditional Listing.

<d4.o n="(b) ">Acts Constituting Actual Fraud.

<d5.o n="(1) ">Misrepresentation.

<d6.o n="(aa) " sec="287] ">Intentional Misrepresentation.

<d6.o n="(bb) " sec="288] ">Negligent Misrepresentation.

<d6.o n="(cc) " sec="289] ">Misrepresentation of Law.

<d6.o n="(dd) " sec="290] ">Fraudulent Representation.

<d5.o n="(2) ">Concealment.

<d6.o n="(aa) " sec="291] ">In General.

<d6.o n="(bb) " sec="292] ">Relative Bids.

<d5.o n="(3) " sec="293] ">False Promise.

<d3.o n="3. ">Constructive Fraud.

<d4.o n="(a) " sec="294] ">In General.

<d4.o n="(b) " sec="295] ">Confidential Relationship.

<d4.o n="(c) " sec="296] ">Creditor'&apos;s Duty to Guarantor.

<d3.o n="4. ">Effect of Fraud.

<d4.o n="(a) ">Fraud in Inducement.

<d5.o n="(1) " sec="297] ">Rescission.

<d5.o n="(2) " sec="298] ">Reformation.

<d4.o n="(b) " sec="299] ">Fraud in Inception.

<d4.o n="(c) ">Reliance by Defrauded Party.

<d5.o n="(1) " sec="300] ">Nature of Requirement.

<d5.o n="(2) " sec="301] ">Negligence of Defrauded Party.

<d4.o n="(d) ">Fraud Without Injury or Damage.

<d5.o n="(1) " sec="302] ">Injury Without Pecuniary Damage.

<d5.o n="(2) " sec="303] ">Rescission Without Injury.

<d4.o n="(e) ">Provision Waiving Contest for Fraud.

<d5.o n="(1) " sec="304] ">Representations Made by Party.

<d5.o n="(2) " sec="305] ">Agent'&apos;s Representation: Innocent Principal.

<d5.o n="(3) " sec="306] ">Agent'&apos;s Representation: Guilty Principal.

<d3.o n="5. ">Innocent Misrepresentation.

<d4.o n="(a) " sec="307] ">Ground for Rescission.

<d4.o n="(b) " sec="308] ">Materiality of Representation.

<d2.o n="C. ">Duress.

<d3.o n="1. " sec="309] ">Nature and Kinds of Duress.

<d3.o n="2. " sec="310] ">Effect of Duress.

<d3.o n="3. ">Threat of Duress (Menace).

<d4.o n="(a) " sec="311] ">In General.

<d4.o n="(b) " sec="312] ">Threat of Criminal Prosecution.

<d3.o n="4. ">Economic Compulsion.

<d4.o n="(a) " sec="313] ">Traditional Rule on Lawful Acts.

<d4.o n="(b) " sec="314] ">Modern Rule: Relief Granted.

<d4.o n="(c) " sec="315] ">Relief Denied.

<d2.o n="D. ">Undue Influence.

<d3.o n="1. " sec="316] ">Nature and Types.

<d3.o n="2. " sec="317] ">Effect of Undue Influence.

<d3.o n="3. ">Parties in Confidential Relationship.

<d4.o n="(a) " sec="318] ">Fiduciaries.

<d4.o n="(b) " sec="319] ">Agents.

<d4.o n="(c) " sec="320] ">Families and Friends.

<d3.o n="4. " sec="321] ">No Confidential Relationship.

<d2.o n="E. ">Adhesive or Unconscionable Contracts.

<d3.o n="1. " sec="322] ">Alternate Approaches.

<d3.o n="2. ">Adhesion Contracts.

<d4.o n="(a) ">In General.

<d5.o n="(1) " sec="323] ">Judicial Development of Concept.

<d5.o n="(2) " sec="324] ">Restatement 2d: Standardized Agreements.

<d5.o n="(3) " sec="325] ">Contract Meeting Adhering Party'&apos;s Reasonable Expectations.

<d4.o n="(b) ">Arbitration Agreements.

<d5.o n="(1) " sec="326] ">Valid Agreements.

<d5.o n="(2) " sec="327] ">Invalid Agreements.

<d5.o n="(3) " sec="328] ">Statutory Compulsory Agreement.

<d4.o n="(c) " sec="329] ">Doctrine Not Applicable.

<d3.o n="3. ">Unconscionable Contract or Term.

<d4.o n="(a) ">In General.

<d5.o n="(1) " sec="330] ">Commercial Code and California Statute.

<d5.o n="(2) " sec="331] ">Restatement 2d.

<d4.o n="(b) ">Procedural and Substantive Unconscionability.

<d5.o n="(1) " sec="332] ">In General.

<d5.o n="(2) " sec="333] ">Unconscionability Defense Applied.

<d4.o n="(c) ">Arbitration Agreement.

<d5.o n="(1) ">Underlying Contract or Provision.

<d6.o n="(aa) " sec="334] ">Promotor'&apos;s Contract With Artist.

<d6.o n="(bb) " sec="335] ">Purchase Subject to Covenants, Conditions, and Restrictions.

<d6.o n="(cc) " sec="336] ">Employment Contract.

<d6.o n="(dd) " sec="337] ">Other Contract or Provision.

<d5.o n="(2) " sec="338] ">Federal Law.

<d4.o n="(d) " sec="339] ">Bank Depositor'&apos;s Signature Card.

<d4.o n="(e) " sec="340] ">Loan at Excessive Interest.

<d4.o n="(f) " sec="341] "> Employment Contract Terminating Commissions.

<d1.o n="VIII. ">STATUTE OF FRAUDS

<d2.o n="A. ">In General.

<d3.o n="1. ">Requirement of Writing.

<d4.o n="(a) " sec="342] ">History and Modern Approach.

<d4.o n="(b) " sec="343] ">California Codes.

<d3.o n="2. ">Contract Unenforceable.

<d4.o n="(a) " sec="344] ">Defense Waived if Not Asserted.

<d4.o n="(b) " sec="345] ">No Affirmative Action.

<d4.o n="(c) " sec="346] ">Evidentiary Effect.

<d3.o n="3. ">How Statute May Be Invoked.

<d4.o n="(a) " sec="347] ">Raising Defense in Lower Court.

<d4.o n="(b) " sec="348] ">Party to Contract or in Privity.

<d3.o n="4. " sec="349] ">Parol Evidence Rule Distinguished.

<d2.o n="B. ">The Note or Memorandum.

<d3.o n="1. ">Nature of Requirement.

<d4.o n="(a) " sec="350] ">Evidence of Terms.

<d4.o n="(b) " sec="351] ">Informal Writings.

<d4.o n="(c) " sec="352] ">Writing Not Intended as Memorandum.

<d3.o n="2. ">Sufficiency of Memorandum.

<d4.o n="(a) ">Strict Rule: Essential Elements of Contract.

<d5.o n="(1) " sec="353] ">Restatement 2d: Strict Rule.

<d5.o n="(2) " sec="354] ">California Cases.

<d4.o n="(b) ">Relaxation of Rule.

<d5.o n="(1) " sec="355] ">Description of Property.

<d5.o n="(2) " sec="356] ">Broker'&apos;s Authorization.

<d5.o n="(3) " sec="357] ">Noncontractual Writing.

<d5.o n="(4) " sec="358] ">Sale of Goods.

<d2.o n="C. ">Signed by Party To Be Charged.

<d3.o n="1. " sec="359] ">Who Is Party To Be Charged.

<d3.o n="2. " sec="360] ">Need Not Be at End of Document.

<d3.o n="3. " sec="361] ">Need Not Be Legal Name.

<d3.o n="4. " sec="362] ">Need Not Be Handwritten.

<d2.o n="D. ">Contracts Within the Statute.

<d3.o n="1. ">Contract Not To Be Performed Within a Year.

<d4.o n="(a) " sec="363] ">In General.

<d4.o n="(b) " sec="364] ">Commencement and Computation of Period.

<d4.o n="(c) ">Where Performance Possible Within One Year.

<d5.o n="(1) " sec="365] ">Period Indefinite.

<d5.o n="(2) " sec="366] ">Conditional Contract.

<d5.o n="(3) " sec="367] ">Option To Terminate.

<d5.o n="(4) " sec="368] ">Option To Extend.

<d5.o n="(5) " sec="369] ">Performance Excused or Discharged.

<d4.o n="(d) " sec="370] ">Exception for Complete Performance on One Side.

<d3.o n="2. " sec="371] ">Contract Not To Be Performed During Lifetime.

<d3.o n="3. ">Promise To Meet Another's Obligation.

<d4.o n="(a) ">The Suretyship Provision.

<d5.o n="(1) " sec="372] ">Scope of Statute.

<d5.o n="(2) " sec="373] ">Restatement 2d.

<d4.o n="(b) ">Where Statute Does Not Apply.

<d5.o n="(1) " sec="374] ">Promise to Debtor or Third Person.

<d5.o n="(2) ">Original Obligation of Promisor.

<d6.o n="(aa) " sec="375] ">In General.

<d6.o n="(bb) " sec="376] ">Main Purpose or Leading Object Rule.

<d4.o n="(c) " sec="377] ">The Executor-Administrator Provision.

<d3.o n="4. ">Sale of Goods of $500 Value.

<d4.o n="(a) " sec="378] ">Scope of Statute.

<d4.o n="(b) ">Exceptions.

<d5.o n="(1) " sec="379] ">Part Payment and Apportionment.

<d5.o n="(2) " sec="380] ">Acceptance and Receipt of Part of Goods.

<d5.o n="(3) " sec="381] ">Contract To Manufacture Goods.

<d5.o n="(4) " sec="382] ">Admission That Contract Was Made.

<d5.o n="(5) " sec="383] ">Qualified Financial Contract.

<d3.o n="5. " sec="384] ">Sale of Chose in Action of $5,000 Value.

<d3.o n="6. ">Sale or Lease of Real Property.

<d4.o n="(a) " sec="385] ">Scope of Statute.

<d4.o n="(b) ">Distinctions and Exceptions.

<d5.o n="(1) " sec="386] ">In General.

<d5.o n="(2) " sec="387] ">Oral Rescission of Sales Contract.

<d3.o n="7. ">Agency To Contract in Writing.

<d4.o n="(a) ">Authority To Bind Principal.

<d5.o n="(1) " sec="388] ">Equal Dignities Rule.

<d5.o n="(2) ">Exceptions.

<d6.o n="(aa) " sec="389] ">Agent Acting Mechanically.

<d6.o n="(bb) " sec="390] ">Executive Officer of Corporation.

<d6.o n="(cc) " sec="391] ">Liability of Principal to Agent.

<d4.o n="(b) ">Real Estate Agent's Right to Commissions.

<d5.o n="(1) " sec="392] ">Nature and Effect of Statute.

<d5.o n="(2) ">Scope of Statute.

<d6.o n="(aa) " sec="393] ">Oral Agreement To Lease.

<d6.o n="(bb) " sec="394] ">Oral Agreement To Obtain Option.

<d6.o n="(cc) " sec="395] ">Oral Finders Agreement.

<d5.o n="(3) " sec="396] ">Exception: Agreement To Sell Personal Property.

<d5.o n="(4) " sec="397] ">Distinctions.

<d3.o n="8. " sec="398] ">Contract To Loan Money or Extend Credit.

<d3.o n="9. " sec="399] ">Marital and Premarital Agreements.

<d3.o n="10. . " sec="400] ">Miscellaneous Provisions.

<d2.o n="E. ">Where the Statute Does Not Apply.

<d3.o n="1. " sec="401] ">Executed Oral Agreement.

<d3.o n="2. ">Part Performance: Transfer of Land.

<d4.o n="(a) " sec="402] ">Scope of Exception.

<d4.o n="(b) ">What Constitutes Part Performance.

<d5.o n="(1) " sec="403] ">In General.

<d5.o n="(2) " sec="404] ">Sufficiency of Possession.

<d5.o n="(3) " sec="405] ">Restatement 2d.

<d3.o n="3. ">Estoppel To Plead Statute.

<d4.o n="(a) ">In General.

<d5.o n="(1) " sec="406] ">Theory of Exception.

<d5.o n="(2) " sec="407] ">Restatement 2d: Promissory Estoppel.

<d4.o n="(b) ">Conduct of Defendant.

<d5.o n="(1) " sec="408] ">In General.

<d5.o n="(2) ">Change of Position and Unjust Enrichment.

<d6.o n="(aa) " sec="409] ">In General.

<d6.o n="(bb) " sec="410] ">Real Estate Broker's Authorization.

<d6.o n="(cc) " sec="411] ">Finder's Agreement.

<d6.o n="(dd) " sec="412] ">Other Situations.

<d4.o n="(c) ">Where Recovery Will Be Denied.

<d5.o n="(1) ">No Substantial Change of Position.

<d6.o n="(aa) " sec="413] ">In General.

<d6.o n="(bb) " sec="414] ">Real Estate Broker's Authorization.

<d5.o n="(2) " sec="415] ">No Unjust Enrichment.

<d5.o n="(3) " sec="416] ">Contract Made by Agent.

<d3.o n="4. " sec="417] ">Qualified Financial Contract.

<d3.o n="5. " sec="418] ">Personal Property Leases.

<d1.o n="IX. ">ILLEGALITY: IN GENERAL

<d2.o n="A. ">What Constitutes Illegality.

<d3.o n="1. " sec="419] ">Illegal Consideration.

<d3.o n="2. " sec="420] ">Illegal Object.

<d3.o n="3. ">Partial Illegality and Severability.

<d4.o n="(a) " sec="421] ">General Principles.

<d4.o n="(b) " sec="422] ">Liberal Rule of Severability.

<d3.o n="4. ">Indirect Connection With Illegal Transaction.

<d4.o n="(a) ">Remote Connection or Mere Knowledge.

<d5.o n="(1) " sec="423] ">General Rule and Theory.

<d5.o n="(2) " sec="424] ">Seller of Goods.

<d5.o n="(3) ">Lender of Money.

<d6.o n="(aa) " sec="425] ">In General.

<d6.o n="(bb) " sec="426] ">Loan to Gambler.

<d4.o n="(b) ">Severance of Executory and Executed Phases.

<d5.o n="(1) " sec="427] ">Agreement To Sell and Sale.

<d5.o n="(2) " sec="428] ">Title Resulting From Performance.

<d4.o n="(c) " sec="429] ">Executory Agreement Superseding Illegal Agreement.

<d3.o n="5. " sec="430] ">Illegal Contract the Foundation of Suit.

<d2.o n="B. ">Effect of Illegality.

<d3.o n="1. ">In General: Contract Void.

<d4.o n="(a) " sec="431] ">Malum In Se and Malum Prohibitum.

<d4.o n="(b) " sec="432] ">No Ratification, Waiver, or Estoppel.

<d4.o n="(c) " sec="433] ">No Validity by Statutory Repeal.

<d4.o n="(d) " sec="434] ">Pleading Unnecessary.

<d4.o n="(e) " sec="435] ">Form Disregarded: Use of Parol Evidence.

<d4.o n="(f) " sec="436] ">No Quasi-Contract Recovery.

<d4.o n="(g) " sec="437] ">No Setoff Where Public Interest Involved.

<d3.o n="2. ">Effect of Being, or Not Being, in Pari Delicto

<d4.o n="(a) ">Restitution or Quasi-Contract Recovery.

<d5.o n="(1) " sec="438] ">Plaintiff's Right to Restitution.

<d5.o n="(2) " sec="439] ">Sales Contract.

<d4.o n="(b) ">Enforcement of Contract.

<d5.o n="(1) " sec="440] ">General Rule: No Enforcement.

<d5.o n="(2) ">When Contract Will Be Enforced.

<d6.o n="(aa) " sec="441] ">In General.

<d6.o n="(bb) " sec="442] ">License Cases.

<d6.o n="(cc) " sec="443] ">Plaintiff in Pari Delicto.

<d6.o n="(dd) " sec="444] ">Illegal Partnership.

<d4.o n="(c) " sec="445] ">Member of Protected Class.

<d4.o n="(d) " sec="446] ">Determination of Relative Wrong.

<d3.o n="3. " sec="447] ">Voluntary Withdrawal From Executory Contract.

<d3.o n="4. " sec="