BU231 Lecture Notes - Lecture 11: Rebuttable Presumption, Fide, Rescission
Document Summary
Thus there might be a mistake on the part of both parties. Direct energy: the 1878 cases of cundy v lindsay show the problem that occurs with courts when a 3rd party is prejudiced by a mistake between two contracting parties. Peek contains the test for whether or not a misrepresentation is fraudulent: the court stated that the test for fraud is whether or not a statement was made knowingly, without belief in its truth, or recklessly. Innocent misrepresentation on the other hand does not allow an action for damages: since a contract resulting from an innocent misrepresentation is. Voidable, the victim may reject the agreement provided (s)he acts promptly after becoming aware of the truth and provided no innocent. The mall currently has a tenant with a 5-year lease which will remain in effect even if/when the mall is sold.
