BUS 393 Chapter Notes - Chapter 4: Rescission, Undue Influence, Indictable Offence

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 393
• Professor: Robert Adamson

Document Summary

Misunderstandings (mutual mistakes): both parties have different understandings of the terms of a contract: most common, usually resolved by court imposing most reasonable interpretation. One-sided mistake (unilateral mistakes): doesn"t normally affect existence of contract. Non est factum (it is not my act) E. g. mistaking a mortgage for a guarantee because you haven"t read it. Courts look at rest of document to try to discern the intention of the parties. Parol evidence rule requires that where the terms of the agreement are clear and unambiguous, no outside extrinsic evidence will be considered: exceptions: evidence of fraud, duress. Provisions that favour one side: limit liability, strictly interpreted, must be brought to other part"s attention. Standard-form contracts contain exemption clauses: e. g. airlines, car dealer warranty. Fundamental breach no longer good law: exemption clauses = unfair, unreasonable result. False/leading statements that induce person to enter a contract. Silence not misrepresentation except where duty of good faith/relationship.