BUS 393 Lecture Notes - Lecture 5: Negotiable Instrument, Unconscionability, Rescission

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 393
• Professor: Richard Yates

Document Summary

Contract is void because lack of consensus. Each party has a different understanding of particular term(s) In event of conflict over misunderstanding, court interprets terms based on most reasonable meaning. Mistake regarding the nature of the agreement. False/misleading statement of facts that lead someone to enter into a contract. Innocent misrepresentation: misleading statement of opinions actionable if made by expert, only remedy = rescission: both parties placed back into original positions, affirmation: if victim acts in manner consistent with confirming validity of agreement after learning of misrepresentation. Fraudulent misrepresentation: intentionally misleading another when entering a contract: rescission and damages available, ***hard to prove because of element of intent. Entering contract because of coercion: intimidation, manipulation, voidable contract. Only parties to a contract are bound by terms/can enforce terms. Exceptions: interests involving land bind subsequent owners, trusts/life insurance enforceable by beneficiaries. Party receiving payment under contract can transfer this benefit to a third party.