Management and Organizational Studies 2275A/B Chapter 8: Chapter 8 - Business Law 2275
Document Summary
Chapter 8 factors affecting the contractual relationship. Courts will not interfere when the parties have simply made a bad bargain. Misunderstanding that destroys consensus results in void contract. Reviewable mistakes in contract; a person s mind being at odds with the terms, surrounding circumstances, or other factors relating to the contract, including the identity of the parties. Can relate to an assumption upon which the contract is based (fact, future event, or law) or an expected result or consequence. Shared mistake (both parties making the same mistake), or misunderstanding. Mistake about the facts involved, courts more likely to provide a remedy. Fundamental shared mistake about subject matter makes contract void. Void it is not a contract at all (contract does not exist), and third parties must return what they was given to them to the original owner (put back into original state)