BU231 Chapter Notes - Chapter 9: Undue Influence, Caveat Emptor, Uberrima Fides
Document Summary
Grounds upon which a contract may be set aside: mistake and misrepresentation. In a common mistake, both parties believe the same erroneous fact. In a mutual mistake, both parties are mistaken but believe different things from each other. In a unilateral mistake, one party is mistaken and the other knows the truth. If the court decides that there has been a mistake, in the legal sense of the word, the contract may be declared void or voidable, or in special circumstances, the mistake may even be corrected/rectified. Webster sued to enforce the contract but failed because the court ruled that he could not possibly believe that the counteroffer was the intended offer price. In this case both parties agree to a contract based on the words actually used, but each party places different meaning on those words: a court will decide which meaning is more reasonable in light of the circumstances.
