Aim: How does “Genuine Agreement” effect contract?
Mistake- an error or misrepresentation in a contract due to one party or both. Mistake will break the “Genuine Agreement”.
Unilateral Mistake- error made by one party. The party bound to the teams and can not void the contract.
a) mistake as the nature of the agreement- valid
If one party misunderstands the terms to the agreement, they cannot avoid it if they made a mistake.
b) mistake as to the identity of the parties- voidable
I. Possibility of Performance- if the subject matter cannot perform to terms, parties may avoid a void the deal.
b. Mistake was to the subject matter– If both parties made an error as to what the subject is,… voidable.
II. Fraud- is a deliberate deception to secure an unfair or unlawful gain
1. Proof of Fraud
a. False representation of a fact
material fact- something that was relied upon and determined the sale.
concealment- non disclosure (cant hide any kind of fault)
b. Representation was known to be false.
c. Misrepresentation intended to be relied upon
d. Actually relied upon
e. Resulting loss
II. Innocent Misrepresentation- a statement of a supposed fact that turns out to be false. Injured party may rescind the contract. Any damage that are above and beyond the agreement can not be sued for.
III. Duress- influencing an individual by use of force a by or bodily harm.
Economic- threats based on employment or income.
Undue influence- unfair and improper persuasive pressure exercise by one to force another into an agreement.