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BusLaw11.014 - MISTAKE Mistake The parties entered into a...

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MISTAKE Mistake: The parties entered into a contract with different understandings of one or more material facts relating to the subject matter of the contract. Mutual (Bilateral) Mistake of Fact: A mistake on the part of both contracting parties as to some material fact. In this case, either party may rescind. Mutual Mistake of Value: If, however, the mutual mistake concerns the future market value or some quality of the object of the contract, either party can normally enforce the contract. Unilateral Mistake: A mistake made by one of the contracting parties. Generally, a unilateral mistake will not excuse performance of the contract unless: (1) the other party to the contract knew or should have known of the mistake; or (2) the mistake is a mathematical or clerical error . Ch. 14: Contracts: Mistakes, Fraud, and Voluntary Consent - No. 1 Clarkson et al.’s Business Law (11th ed.)
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MISREPRESENTATION Fraudulent Misrepresentation: An innocent party induced by fraud to consent to a contract may usually avoid the contract, because she did not genuinely assent. To avoid the contract, the innocent party must prove: (1) A party misrepresented a material fact , (2) with the intent to deceive an innocent party, (3) on which the innocent party justifiably relied , (4) resulting in injury to the innocent party. Innocent Misrepresentation: A statement made by a person, believing it to be true, that actually misrepresents some material fact.
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