ACC 205 Lecture Notes - Lecture 13: Rescission, Standard Form Contract, Unconscionability
Document Summary
Must be a meeting of the minds . If either party performed, even partially, they ,are able to recover for damages or recover monetary consideration already paid. Misunderstandings regarding material facts of contract at the time the agreement was. Mistake of fact v. mistake of value or quality. Mistake made by one contracting party; generally, contract still binding. The other party knows o should know of the mistake. Error was due to substantial mathematical mistake and made inadvertently and there was no extreme negligence. Mistake made by both parties; if mutual mistake of material fact, either party can rescind contract. Only mistake of fact are sufficient, no mistakes of value. If both parties are mistaken about a mistake in value, there is an enforceable contract. Intentional, untruthful assertion of material fact by a k party; aggrieved party can rescind contract, and sue for damages. Courts permit contract rescission for fraudulent misrepresentation, assuming: Negligence resulting in deception, or intent to deceive.
