BLW 1001 Lecture Notes - Lecture 14: Scienter, Undue Influence, Rescission

• School: St. John's University
• Department: BLW - BUSINESS LAW
• Course: BLW 1001
• Professor: Boland- De Vito

Document Summary

All agreements must be voluntary to be enforceable. Parties who enter into a contract must exercise reasonable caution and judgment. Courts don"t allow parties to avoid responsibility. Behaviors that prevent a party from freely entering into a contract include: To the detriment of the person relying on it. One party, by making a (wrongful) threat of harm. Forced the other party to enter into a contract. One party uses his influence to coerce the other to enter into a contract. Always a basis for granting rescission of the contract at either party"s request. Mistakes may arise from an ambiguous term. The test for determining if a mistake was made is an objective test. Only one party to the agreement is acting under a mistaken belief. Plaintiff: made mistake no negligently or with slight negligence mistake was of a fact promptly notified defendant when mistake was discovered serious injustice would result if contract is enforced.