University:
University of North Carolina at Charlotte
Course:
BLAW3150 | Business Law
Academic year:

2023
Views:

410

Pages:

6
Author:

folclord7m

13-1 Mistakes • If one party does not voluntarily consent to the terms of a contract, then the law will not normally enforce the contract. • Voluntary consent (assent) may be lacking because of mistake, fraudulent misrepresentation, undue influence, or duress. • Only a mistake of fact (and not a mistake of value or quality) makes a contract voidable. 13-1a Unilateral Mistakes • A mistake that occurs when one party to a contract is mistaken as to a material fact. • The contract normally is enforceable against the mistaken party. • Exceptions: 1. The other party knew or should have known that a mistake of fact was made. 2. The error was due to a substantial mathematical mistake and was made inadvertently and without gross (extreme) negligence. 13-1b Bilateral (Mutual) Mistakes (slide 1 of 2) • A mistake that occurs when both parties are mistaken about same material fact. • Either Party Can Rescind the Contract • Normally, the contract is voidable by the adversely affected party and can be rescinded. • Case Example 13.2 Coleman Holdings Limited Partnership v. Eklund (2015) Exhibit 13-1 Mistakes of Fact 13-1b Bilateral (Mutual) Mistakes (slide 2 of 2) • When the Parties Reasonably Interpret a Term Differently • If the contract parties attach materially different meanings to the term, the mutual misunderstanding may allow the contract to be rescinded or reformed. • Case Example 13.3 Richard v. Anadarko Petroleum Corp. (2017) 13-1c Mistakes of Value • If a mistake concerns the future market value or quality of the object of the contract, the mistake is one of value, and the contract normally is enforceable.