BU231 Chapter Notes - Chapter 8: Inequality Of Bargaining Power, Canadian Automobile Association, Fiduciary
Document Summary
Chapter 8 grounds upon which a contract may be set aside: mistake and. In only a few circumstances may someone be released from a contract because of a mistake. Just because things do not turn out as expected does not mean a legal mistake has been made. Only certain kinds of mistakes will make a contract void or voidable and thereby qualify for equitable relief. Void: the contract never comes into existence and no rights pass. Voidable: the contract exists until set aside by the court; rights may pass to third parties before it is set aside. Equitable relief: a discretionary remedy first developed by the courts of equity to undo an injustice. If a mistaken party cannot restore the subject matter of the contract to the other party. For instance, the goods have been consumed, or have substantially deteriorated the mistaken party loses the right to rescind.
