MANGMT 3540 Chapter Notes - Chapter 12: Rescission, Scrivener, Undue Influence
Document Summary
Reality of consent: the concept that there is a defense to a contract unless the parties consent is both real and voluntary. 5 ways lack of reality of consent is present: mutual mistake of material fact, material misrepresentation, duress, undue influence, unconscionability. Each of these will allow one or more of the parties to avoid the contract though a lawsuit in equity seeking an order called recession. Reformation: court-ordered revision of a contract to correct a mistake in reducing it to writing. Scrivener"s error: the scrivener, the writer, misunderstands or improperly records the deal of the contracting parties so that the writing does not reflect the party"s agreement. Material: important to the subject matter at hand. General rule is that unilateral mistake is not grounds for rescission. Innocent misrepresentation: (remedy of rescission) misrepresentation without fault: negligent misrepresentation: occurs when a party makes a statement without exercising due care to ensure that the statement is true, remedies include a. i.
