BMGT 380 Lecture Notes - Lecture 8: Punitive Damages, Rescission, Cognitive Test
18 Oct 2018
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If an agreement is made because of duress, misrepresentation, fraud, a mistake, etc. , consent isn"t actually real. Courts want people to engage in agreements that represent reality. The injured party can rescind the contract bc their consent wasn"t real: must rescind promptly once you"ve learned of the voidable offense. Innocent: selling a power drill that you firmly believe works perfectly, it doesn"t work: remedy = rescind the contract (give money back, give drill back) Fraudulent: purposely lied to get you to agree to sign the contract: remedy = rescission + punitive damages (for fraud, omissions included. Mutual mistake both parties are mistaken about some central fact. Requirements: the mistake relates to a basic assumption on which the contract is based. Paying ,000 for no napkins : party that"s hurt by the mistake doesn"t assume the risk of the mistake, ex.
