BU231 Lecture Notes - Lecture 10: Rescission, Buto, Collateral Contract
Document Summary
Void contract was flawed drom the start and never had any legal standing. Voidable has an option, can still be enforceable, only some parts may be avoided. If the contract is void, then a can get car back from c because ownership never can pass with a void contract. If the contract is voidable, and a waits unitl b sells his car to c, then c gets to keep a"s car and he is out of pocket. This is because ownership cam pass with a voidable contract. Key distinction of transaction where goods are subsequently conveyed to an innocent third party. Void goods will be retunred from third party while voidable goods are lost to third party. Every day mistakes (ie realizing a bad bargain was made) do not entitle someone to end a contract. Legal mistakes that entitle a party to rescind a contract takes 3 forms: unilateral mistakes (one side only, common mistake (both/same, mutual mistake (both/different)
