BU231 Chapter Notes - Chapter 9: Bona Fide Purchaser, Inequality Of Bargaining Power, Rescission
Document Summary
If a contract is void, it was technically never formed at all: voidable contracts exist until they are set aside (rescind; undo or revoke a contract and return the parties as nearly as possible to their original positions. If property is transferred to an innocent purchaser, the original contract is declared void, not voidable. Mistakes about the terms: words used inadvertently, results in a unilateral mistake by the careless party. If an obvious mistake is made, then the contract might still be voidable: errors in recording an agreement. If the final written version of the contract does not accurately reflect the original agreement, it need not be declared voidable for mistake. If it is a common mistake, rectification is simple. If the defe(cid:374)da(cid:374)t k(cid:374)e(cid:449) of the (cid:373)istake a(cid:374)d the plai(cid:374)tiff did(cid:374)"t (cid:449)he(cid:374) sig(cid:374)ed. If both parties are equally reasonable or unreasonable, the contract will be considered void.
