BU231 Chapter Notes - Chapter 9: Undue Influence, Equitable Remedy, Rescission
Document Summary
Setting aside a contract: setting aside a contract is not an easy task, courts tend to hold parties to the bargains they. If a mistaken party cannot restore the subject matter of the contract to the other party, the is taken party loses the right to rescind. Rescind: set aside, undo or revoke a contract and return the parties as nearly as possible to their original positions: to understand the law of mistake we look at two issues. In a common mistake both parties believe the same erroneous fact. In a mutual mistake both parties are mistaken but believe something different from each other. If only one party is mistaken and the other knows the truth it is a situation known as unilateral mistake. In each mistake the court will decide whether to hold the parties to the bargain, correct the mistake for the parties, or rescind the contract completely.
