BU231 Lecture Notes - Lecture 27: Rescission
Document Summary
Mistake in assumptions: refers to the subject matter of the contract, mistake in assumption as to the existence of the subject matter k is void. 459 violated the general principle that between two innocent parties, the more blameworthy should bear the loss: king"s norton metal co. v. edridge (1879), 14 t. l. r. 98 limits the application of cundy: subsequent purchasers are better protected when the original transaction takes place in person (k=voidable) Mistake and innocent 3rd parties: usually occurs in situations of fraud. F takes the 5073 and moves to s. america a discovers mistake. Who suffers the loss: if k is deemed void, then there was no k and therefore goods or money must be returned to a. Title did not pass to f, but stayed with a: if k is deemed voidable, then there was a k and therefore goods or money stays with b.
