BL-Chapter 13 - 1 CHAPTER 13 GENUINENESS OF ASSENT AND...

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CHAPTER 13 GENUINENESS OF ASSENT AND UNDUE INFLUENCE Introduction to Genuineness of Assent -Voluntary assent by the parties is needed to create an enforceable contract Genuine Assent Necessary to create an enforceable contract. Determined by relevant facts surrounding negotiation and formation of the contract. May be manifested in any manner sufficient to show agreement, including express words or conduct of the parties. A contract may not be enforced if the assent of one or both of the parties was not genuine Genuine assent may be lacking due to: Mistake Misrepresentation Duress Undue Influence Mistakes Occurs when one or both of the parties have erroneous belief about subject matter, value, or other aspect of the contract. Mistakes may be: Unilateral 1
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Mutual Law may permit rescission of some contracts made in mistake. Unilateral Mistake Occurs when only one party is mistaken about material fact regarding subject matter of the contract. The contract may not be enforced if: One party makes a unilateral mistake and the other party knew or should have known that a mistake was made. Mistake was clerical or mathematical error that was not the result of gross negligence. Mistake is so serious that enforcing the contract would be unconscionable . Generally, the mistaken party will not be permitted to rescind the contract. Contract will be enforced. Mutual Mistakes Mutual Mistake of Fact - Either party may rescind a contract if there has been a mutual mistake of past or existing material fact Mistake made by both parties concerning a material fact (a fact that is important to the subject matter of the contract. An ambiguity in a contract may constitute a mutual mistake of a material fact 2
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An ambiguity occurs where a word or term in a contract is susceptible to more than one logical interpretation E.g., each party referring to a different ship and delivery time ( Raffles case) Contract may be rescinded on the ground that no contract has been formed because there has been no “meeting of the minds between the parties. Mutual Mistake of Value Both parties know the object of the contract, but are mistaken as to its value. E.g., seller agrees to sell old painting for $100, and it turns out that collectors
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This note was uploaded on 04/21/2011 for the course BUS LAW 320 taught by Professor Soos during the Spring '10 term at Rutgers.

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BL-Chapter 13 - 1 CHAPTER 13 GENUINENESS OF ASSENT AND...

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