33:140:320 Lecture Notes - Lecture 12: Buda, Unconscionability, Scienter
Document Summary
Genuineness may be lacking because of mistake, fraudulent misrepresentation, undue influence, or duress. Mistakes: mistakes of fact and mistakes of value or quality. Only mistake of fact can be avoided: unilateral mistake- occurs when one party to a contract is mistaken as to a material fact; contract normally enforceable. Word or term may be subject to more than one reasonable interpretation. W purchased cotton came in 2nd peerless ship. Inkel v. pride chevrolet: favored inkels said not clear if there was a mutual mistake, material fact- fact to which a reasonable person would attach importance in determining his or her course of action. Fraudlent misrepresentation: can rescind or enforce and seek damages. Misrepresentation of material fact, must be intent to deceive, innocent party must justifiably rely on misrepresentation to collect damages party must have been injured as a result. Misrepresentation must occur statement of fact, can be recission or reformation if believes in opinion.
