AJ 025 Chapter Notes - Chapter 13: Real Estate Broker, Punitive Damages, Scienter

• School: College of The Sequoias
• Department: Administration of Justice (AJ)
• Course: AJ 025
• Professor: shirk

Document Summary

Voluntary consent: a party who demonstrates that they did not genuinely agree to the terms of a contract can choose to either carry out with the contract or cancel it and avoid the entire transaction. Mistakes: mistake of fact v. mistake of value/quantity. Certain circumstances allow for contracts to be avoided due to mistake. Must be mistake of fact not value. Unilateral mistake: a mistake that occurs when one party to a contract is mistaken as to a material fact. Bilateral (mutual) mistakes: a mistake that occurs when both parties to a contract are mistaken about the same material fact. Contract can be rescinded by either party. Mutual misunderstanding/interpretation of a term may allow contract to be rescinded. Fraudulent misrepresentation: misrepresentation that is consciously false and is intended to mislead another. Innocent party can either rescind contract and be restored to their original position or enforce the contract and seek damages for any harms resulting from the fraud.