ACTG 1P71 Lecture Notes - Lecture 9: Rescission, Special Relationship, Undue Influence
Document Summary
Chapter 8 - factors affecting the contractual relationship. Mistake: an error about some aspect of a contract that destroys consensus, courts will try to give effect to the reasonable expectations of the parties. Mistake as to terms: shared mistake, 2 different interpretations of a contract, look at it with reasonable person test, equally reasonable in interpretation, no agreement/contract, case: padgett vs. marshall. Misunderstanding about meaning of words: case: raffles vs wichelhaus. Court settles these issues with a reasonable person test. Mistake in innocent third parties: void: contract never have validity, voidable: contract is good until a voids it, rules tend to favor the innocent third party. Mistake of nature of documents: offence to get out of contract if you completely misunderstood nature of contract, offence of nonestfactum (cid:862)not (cid:373)y doi(cid:374)g(cid:863, not an excuse for carelessness, blind, illiterate, foreign, elderly. Misrepresentation: a untrue statement of fact; an incorrect or false representation.
