COMM231 Study Guide - Final Guide: Equitable Remedy, Bona Fide Purchaser, Caveat Emptor
26 May 2014
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In order to receive protection, a third party purchaser must be innocent and have paid the value of the goods. Comm 231 exam chapter notes: unilateral mistake a situation in which only one of the parties believes there is a mistake in the contract. Such contract is voids for mistake as to the meaning of the terms: mutual mistake a situation in which both parties believe a mistake exists in the contract but their understandings of the mistake are different. Mistake about the value of the subject matter. Comm 231 exam chapter notes: under the principle of caveat emptor, a buyer is expected to inspect the goods and satisfy himself as to their character, quality and value. If the literate party materially misrepresented the nature of the document, it would be declared void. In contract law, any material misrepresentations, be they innocent, negligent, or fraudulent, give rise to the right to rescind a contract.
