Chapter 13 Notes - 1

Chapter 13 Notes - 1 - Misrepresentation of fact intent to...

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Ch. 13 Mistakes Mistake of fact (may be voidable) vs. mistake of value or quality (cannot rescind) Unilateral Mistake – a mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable o Exception: Other party knows or should have known that a mistake of fact was made o Mathematical mistake Bilateral Mistake – a mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract o Raffles v. Wichelhaus (Peerless ship) – mutual mistake was made resulting in unenforceable contract Fraudulent Misrepresentation:
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Unformatted text preview: Misrepresentation of fact, intent to deceive, justifiable reliance • Misrepresentation of fact o Misrepresentation by conduct o Misrepresentation by law – parties are bound unless professional misrepresents fact o Misrepresentation by silence • Intent to deceive o Scienter (guilty knowledge) – knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive • Justifiable reliance o Does not know the true facts and has no way of finding them out • Injury to the Innocent Party o Punitive (or exemplary) damages are allowed: based on public-policy consideration...
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This note was uploaded on 04/09/2012 for the course LAW LAW taught by Professor Ricks during the Spring '09 term at Rutgers.

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