BU231 Lecture Notes - Lecture 5: Rescission, Uberrima Fides, Unconscionability
Document Summary
Rescission: the setting aside of a contract because of some defect affecting its formation such as mistake, misrepresentation, duress, or undue influence, or, the discharge of the contract by the subsequent agreement of the parties. Mistake in identity: often occurs in fraud situations, cundy v. lindsay, violated the general principle that between two innocent parties, the more blameworthy should bear the loss. Subsequent purchasers are better protected when the original transaction takes place in person. If k is deemed void, then there was no k and therefore goods or money must be returned to. A: title did not pass to f, but stayed with a. Misrepresentation: a statement/representation made during negotiation of a contract, before formation of the contract, that turns out to be false, can be: Innocent: negligent, fraudulent, elements, statement/representation made, statement is false. It was an unconscionable contract: that the contract is unfair or disadvantageous to weaker party.
