BUS 393 Chapter Notes - Chapter 4: Cheque, Novation, Down Payment
11 May 2016
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When both parties are happy with the outcome, it is not necessary that the contract be legally enforceable: mistake (page 94) When contracts are challenged, the argument often revolves around the interpretation of particular terms. Such mistakes can take place in 3 ways: For this to take place, the actual terms of the agreement must be clearly understood by both parties at the time of contract and the error must be simply in the recording of the agreement. Where only one of the parties is in error: unilateral mistakes, will not usually affect the existence of the contract. This is where the principle of caveat emptor is applied: let the buyer beware: non est factum can cause void contract. Parol evidence rule: requires that where the terms of the agreement are clear and unambiguous, no outside extrinsic evidence will considered that contradicts those clear terms.
