BU111 Lecture Notes - Lecture 4: Undue Influence, Standard Form Contract, Mail Order
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Backing out of contracts: mistake & misrepresentation . Note: a party may not back out of an illegal contract and be placed back in their pre-contract position. Every day mistakes (i. e. , realizing a bad bargain was made) do not entitle someone to end a contract. Legal mistakes that entitle a party to rescind a contract take 3 forms. And must be about either the terms or assumptions at the start of the contract. Key distinction of transactions where goods are subsequently conveyed to an innocent third party. Void goods will be returned from third party while voidable goods are lost to third party. Action for rescission of the contract gives the parties: A) what they are promised in the contract. B) money to cover any harm done to them. C) return of the money or property they have paid under the contract. Car example: all wheel drive is more valuable than rear wheel drive.
