Management and Organizational Studies 2275A/B Lecture Notes - Lecture 8: Rescission, Undue Influence, False Statement

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: James Fraser Hildebrand

Document Summary

Factors affecting the contractual relationship: mistake, shared mistake. The parties are in complete agreement, but make the same mistake. This does not include the mistake of value. If one is to believe they are selling a normal item which turns out to be a rare item, contract is binding. When there is a shared mistake, the courts tend not to void it but rather rectify the mistake. There will be a void if there is a lack of consensus or if the whole factual aspect of the contract is mistake: misunderstanding. When the parties sign on to something thinking that the agreement has to do with a certain aspect, but has to do with something else. Will apply reasonable person test, see which side is more reasonable and will adopt reasonable side. If reasonable person test does not work, contract usually void to no consensus: one sided mistake.