BU231 Chapter Notes - Chapter 9: Inequality Of Bargaining Power, Unconscionability, Caveat Emptor
Document Summary
Chapter 9: grounds upon which a contract may be impeached: misrepresentation, undue influence. Material could reasonably be expected to influence the decision of a party to enter into a contract. Rescind set the contract aside and put the party back in her pre-contract position. Someone who innocently makes a misstatement and later learns that it is false must inform the other party of the true situation as soon as possible. An innocent misrepresentation becomes fraudulent or negligent if the party responsible fails to correct it when in a position to do so. When a party has relied upon an innocent misrepresentation and learns the true facts, the contract is voidable at the option of the victim. Indemnity or compensation a money award given as a supplement to rescission for loss sustained in performing a contract. Rescission setting aside or rescinding a contract in order to restore the parties as nearly as possible to their pre-contract positions.
