LAW-2150 Lecture 11: Business Law Chapter 13
Document Summary
Contract defenses : a lack of voluntary consent (assent to term of contract- if you don"t do this then there"s no contract) can be used as a defense to the contract"s enforceability. Consent may be lacking due to: (all defenses to contractual performance) Mistakes: a mistake of fact occurs when the parties entered into a contract with different understandings of one or more material facts (important fact)relating to the contract"s performance. Sell house on dogwood lane but really on dogwood road. Only a mistake of fact makes a contract voidable. Mistakes of fact occur in two forms bilateral (both parties are mistaken and unilateral (one party is mistaken) Bilateral (mutual) mistakes of fact: a mistake by both contracting parties about one or more material facts of the contract. (case in point 13. 2) when this happens, it may be rescinded. When the parties reasonably interpret a term differently, a court may allow the contract to be rescinded.
