Management and Organizational Studies 2275A/B Lecture 9: Contract+-+Failure+to+Comply-updated+2016

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Sssssss

Document Summary

**note: in the following situations the failure of the parties to create a contract is due to the need for another essential element of contract. Parties can agree to create rights and obligations, but for all elements of the contract there must be a meeting of the minds , in latin, consensus ad idem. Parties must know what they are agreeing to. Given the traditional notion that parties are free to agree to what they like, and the courts are not to interfere, the principles that allow a party to avoid its obligations are limited. In other words, courts are reluctant to interfere except in limited situations. Mistake: must go to essential element or fundamental term of the contract, mistake made as the result of a party"s negligence may not defeat contract. A mistake as to the existence of subject matter of the contract, results in contract being void ab initio, from the beginning .