33:140:320 Lecture Notes - Lecture 12: Unconscionability, Inequality Of Bargaining Power, Rescission
Document Summary
A valid contract can still be unenforceable if the parties have not genuinely assented. A person who did not genuinely assent (agree) to the terms of the contract can choose to either carry out the contract or to rescind (cancel) it. A mistake of value cannot cause a contract to be rescinded. A mistake of fact occurs as either unilateral or bilateral. I. e. contractor severely under prices his estimate due to subtraction error. Misrepresentations must occur: 1st element of proving fraud is to show that misrepresentation of material fact has occurred, statement of opinion are generally not subject to a claim of fraud. Misrepresentation can occur by conduct as well as through express oral or written statements. I. e. if a seller, by their actions, prevents a buyer from learning of some fact that is material to the contract, such behavior constitutes misrepresentation by conduct: misrepresentation of law.
