ACTG 2P40 Lecture Notes - Lecture 5: Bona Fide Purchaser

• School: Brock University
• Department: Accounting
• Course: ACTG 2P40
• Professor: Tommy Wall

Document Summary

It does(cid:374)"t ha(cid:448)e the sa(cid:373)e (cid:373)ea(cid:374)i(cid:374)g as a ge(cid:374)e(cid:396)al pe(cid:396)so(cid:374) However, you cannot be bound by that ag(cid:396)ee(cid:373)e(cid:374)t si(cid:374)(cid:272)e that"s (cid:374)ot (cid:449)hat you guys agreed on. Basically you rectify or fix the contract: there are three requirements for rectification: There was a complete oral agreement between the parties free from ambiguity (nothing grey or clear terms) The pa(cid:396)ties did(cid:374)"t e(cid:374)gage i(cid:374) futu(cid:396)e (cid:374)egotiatio(cid:374)s. The change in the written document is most easily explained as an error in recording. 2200 was typed as 22200: misunderstanding as to the meaning of words. The parties have a misunderstanding however the court will not help them out because both of the parties have mistaken the terms. If only one party has a bad interpretation, the court is going to side with the party that has the better interpretation: mistakes arising from assumptions, mistakes as to the existence of subject matter.