ACTG 2P40 Lecture Notes - Lecture 5: Precontract, Inequality Of Bargaining Power, False Statement

• School: Brock University
• Department: Accounting
• Course: ACTG 2P40
• Professor: E. Bush

Document Summary

Grounds upon which a contract may be set aside: mistake and misrepresentation. Courts will generally hold parties to the bargains that they make- however- in rare circumstances courts realize the need to set aside a contract. Void: contract was never formed at all. Voidable: contract exists until it is set aside by the court. Rescind: set aside; undo or revoke a contract and return the parties as nearly as possible to their original positions. (party to a contract may rescind it in certain circumstances) Set aside: court intervention- rescind: undo or revoke a contract and return the parties as nearly as possible to their original positions. Rectification: court corrects the contract to accurately reflect agreement. Mistake about the identity of a party to the contract. One party inadvertently (mistakenly) uses the wrong words in stating the terms of the contract. Unilateral mistake: a situation in which only one of the parties believes there is a mistake in the contract.