BU231 Chapter Notes - Chapter 8: Corporate Security, Uberrima Fides, Legal Advice
Document Summary
Setting aside contract no easy hold parties to their bargain. Relief available if there is a mistake/misinterpretation. A mistake things don"t go the way you expected: like leaving the house with no umbrella and it rains mistake. Legal mistakes contract becomes void/voidable equitable relief. Under equity must return any benefits received. Rescind: go back to original position: if party consumes/ party loses ability to rescind. Mutual mistake: both parties make a mistake: mistakes about identity of party, mistakes about subject matter, mistake with terms. Void contract cannot be enforced by both parties. Voidable contract unbound by one party and bound by another unbound party ability to cancel before bound party performs. Mistake may be corrected (rectified) or voided never formed. Using wrong words in stating terms in contract: unilateral mistake by careless party (party used term wrong, one party believes mistake in contract. Two parties: can void at any time. Mistake about the value of the subject matter:
