BLAW 2301 Lecture Notes - Lecture 19: Rescission, Estoppel
Document Summary
Innocent misrepresentation: not made intentionally or recklessly, then innocent misrepresentation has occurred. Special problem: silence: the original rule buyer be aware . To correct a previous: when an earlier statement later appears inaccurate, the change must be reported. To correct a basic mistaken assumption: when one party knows that the other is negotiating with a mistaken assumption about an important fact, the party who knows of the error must correct it. Occurs when both parties negotiate base on same factual error. If the parties contract based on an important factual error, the contract is voidable by the injured party (note: the error must be factual) I know it can"t have calves then it is baren = cheaper. Sell the cow, but cow then has calf. You get cow and calf back or get more money. No rescission is permitted when one of the parties knows he is taking a risk: both didn"t know, so take the risk, unilateral mistake.
