Ch 16 Notes LPP.docx - Genuineness of Asset Nature of assent Voluntary and unimpeded agreement between parties is central to contracting Therefore we

Ch 16 Notes LPP.docx - Genuineness of Asset Nature of...

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Genuineness of Asset Nature of assent Voluntary and unimpeded agreement between parties is central to contracting. Therefore, we must exam the genuineness of the assent. Remedy of Rescission An agreement is voidable when: o A person or entity makes an agreement based on a mistake or misrepresentation o Enters into an agreement involuntarily – through undue influence or duress, or by way of adhesion contract The person who did not provide true consent to an agreement because of the actions of the other party is given the power of rescission – the ability of a party to cancel an agreement When the power of rescission is invoked, the law demands that the parties put themselves into the position they were before the agreement – so anything provided must be returned Should usually be in a swift manner and shortly after the contract is produced Note: no one has to rescind; it is up to the party that was the victim of the misrepresentation, mistake, or involuntary agreement Definitions Mistake – some unintended act, omission, or error that arises from ignorance, surprise, imposition, or misplaced confidence o The mistake must be material; it must show that there is no real or genuine assent o
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