Genuine Assent Necessary to create an enforceable contract. Determined by relevant facts surrounding negotiation and formation of the contract. May be manifested in any manner sufficient to show agreement, including express words or conduct of the parties. Genuineness of Assent (continued) May be lacking due to: Mistake Misrepresentation Duress Undue Influence | GENUINENESS OF ASSENT AND UNDUE INFLUENCE © 2010 Pearson Education, Inc., publishing as Prentice-Hall CHAPTER 13 Genuine Assent Necessary to create an enforceable contract. Determined by relevant facts surrounding negotiation and formation of the contract. May be manifested in any manner sufficient to show agreement, including express words or conduct of the parties. Genuineness of Assent (continued) May be lacking due to: Mistake Misrepresentation Duress Undue Influence Mistakes One or both of the parties have erroneous belief about subject matter, value, or other aspect of the contract. Mistakes may be: Unilateral Mutual Law may permit rescission of some contracts made in mistake. Unilateral Mistake When one party is mistaken about material fact regarding subject matter of the contract. Generally, the mistaken party will not be permitted to rescind the contract. Contract will be enforced. Unilateral Mistake (continued) Relief will be granted if: Other party knew or should have known that a mistake was made. Mistake was clerical or mathematical error that was not the result of gross negligence. Mistake is so serious that enforcing the contract would be unconscionable. Mutual Mistake of Fact Mistake made by both parties concerning a material fact that is important to the subject matter of the contract. ., each party referring to a different ship and delivery time (Raffles case) Contract may be rescinded on the ground that no contract has been formed because there has been no “meeting of the minds” between the parties. Mutual Mistake of Value Both parties know the object of the contract, but are mistaken as to its value. ., seller agrees to sell old painting for $100, and it turns out that collectors highly value such paintings. Contract is enforceable. No relief for party that got “worst” of the deal. Contrary rule would open every contract to such disputes. Fraudulent Misrepresentation Misrepresentation Assertion is made that is not in accord with the facts. | GENUINENESS OF ASSENT AND UNDUE INFLUENCE © 2010 Pearson Education, Inc., publishing as Prentice-Hall CHAPTER 13 Genuine Assent Necessary to create an enforceable contract. Determined by relevant facts surrounding negotiation and formation of the contract. May be manifested in any manner sufficient to show agreement, including express words or conduct of the parties. Genuineness of Assent (continued) May be lacking due to: Mistake Misrepresentation Duress Undue Influence Mistakes One or both of the parties have erroneous belief about subject matter, value, or other aspect of the contract. Mistakes may be: Unilateral Mutual Law may permit rescission of some contracts made in mistake. Unilateral Mistake When one party is mistaken about material fact regarding subject matter of the contract. Generally, the mistaken party will not be permitted to rescind the contract. Contract will be enforced. Unilateral Mistake (continued) Relief will be granted if: Other party knew or should have known
