LGS 200 Lecture Notes - Lecture 10: Oral Contract, Condition Precedent, Rescission
21 Mar 2017
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May be lacking because of a mistake, misrepresentation, undue influence, or duress, no meeting of mind . Unilateral mistake- made by only one of the parties, does not give mistaken party any right to relief from the contract. Bilateral mistake - a mutual misunderstanding concerning a basic assumption on which the contract was made, contract can be rescinded. Concerns the future market value of quality of the object of the contract. The other party to the contract knows or should have known that mistake of fact was made. The error was due to a substantial mathematical mistake (+,-, , x) by gross negligence. One party can greatly influence another party, this overcoming that party"s free will. Party does not exercise free will in entering into a contact. The use of threats to force a party to enter into a contract (blackmail) Must be proof of threat (wrongful or illegal) Can discharge by performance of contractual duties.
