BLAW - Chapter 17

BLAW - Chapter 17 - One party made a mistake about a...

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Alex Fish BLAW – Chapter 17: Legal Assent The Importance of Legal Assent A promise to buy or sell that the courts will require the parties to obey Without legal assent a contract is voidable, and it can be rescinded or cancelled. Obstacles include mistake, misrepresentation, undue influence, duress, unconscionability Mistake The only mistakes recognized in assent of a contract are misunderstanding of the facts. Legal assent is absent when a legal mistake occurs. A mistake is an erroneous belief about the facts of the contract at the time the contract is concluded . Mistakes do not result from untrue statements, that is misrepresentation. o Unilateral Mistake: generally does not void a contract. Any of these conditions would allow a court to permit invalidation of a contract because of a unilateral mistake
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Unformatted text preview: One party made a mistake about a material fact; the other party knew or had reason to know of the mistake The mistake was caused by a clerical error that did not result from gross negligence The mistake was so serious that the contract is unconscionable, that is, so unreasonable that is it outrageous o Mutual Mistake: when both parties make a mistake about the facts; either party can rescind the contract. Mutual mistakes must involve all of the following: A basic assumption about the subject matter of the contract A material effect on the agreement An adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement...
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