BU231 Chapter 8: Chapter 8
Document Summary
Chapter 8: grounds upon which a contract may be impeached: mistake. Equitable relief a discretionary remedy first developed by the courts of equity to undo an injustice. Circumstances are limited that the courts will recognize a mistake and provide equitable relief. If words are used inadvertently when stating the terms of the contract, the consequences of the error fall on the one who caused the problem. Rectification correction of a written document to reflect accurately the contract made by the parties. A party claiming that the arrangement was improperly recorded may ask the court for rectification of the contract. It is not easy to establish the conditions necessary for rectification: if the terms were ambiguous in the original agreement of if the parties carried on subsequent negotiations, a court is very reluctant to alter the final agreement. Parties may place quite different meanings on words. A court will decide which meaning is the more reasonable in light of the circumstances.
