MGMT 3100 Chapter Notes - Chapter 9: Precontract, Undera, Caveat Emptor
17 Oct 2015
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Document Summary
Grounds upon which a contract may be set aside: mistake and misrepresentation. There are certain principles that allow a party to be released from a contract and returned to a pre- contract position. Can get relief in the event of a mistake or misrepresentation. Error in judgement do not legally justify avoiding one"s legal obligation under a contract. Voidable: the contract exists until set aside by court; rights may pass to third parties before it is set aside. Rescind: set aside; undo or revoke a contract and return the parties to their original positions as nearly as possible. Common grounds for mistakes: subject matter, identity of the part and terms of the contract. Common mistake: both parties believe the same erroneous fact. Mutual mistake: both parties are mistaken, but believe something different from each other. Unilateral mistake: when one party is mistaken and the other knows the truth.
