Mistakes can affect the validity of contracts in different ways depending on whether the mistake was common to both parties, unilateral, or mutual. [1] For a common mistake, the contract will usually be void if the subject matter does not exist or belongs to one party already. [2] For a unilateral mistake, the contract may be void if the mistaken party did not understand the contract terms and the other party was aware, while for identity mistakes additional conditions must be met depending on if parties were present. [3] For a mutual mistake where the parties misunderstood each other, the contract could be void if an objective reasonable person would not understand it in only one sense.
Learning Outcome:
After completion of the lesson students will be able to -
a) comprehend the nature of misrepresentation in contracts
b) distinguish between representation and promise
c) describe the elements of misrepresentation
d) describe the elements of fraud
e) distinguish between misrepresentation and fraud
Learning Outcome:
After completion of the lesson students will be able to -
a) comprehend the nature of misrepresentation in contracts
b) distinguish between representation and promise
c) describe the elements of misrepresentation
d) describe the elements of fraud
e) distinguish between misrepresentation and fraud
Detailed Presentation on Fraud in Contract
Made By:
Edited By: Ayush Patria, Sangam University, Bhilwara
Follow us on Instagram: @law_laboratory
Website: www.lawlaboratory.com
Check out these study notes which I found online and which I think will be very useful to you. I have made hard copies which I will give to you at the next lecture.
Detailed Presentation on Fraud in Contract
Made By:
Edited By: Ayush Patria, Sangam University, Bhilwara
Follow us on Instagram: @law_laboratory
Website: www.lawlaboratory.com
Check out these study notes which I found online and which I think will be very useful to you. I have made hard copies which I will give to you at the next lecture.
The GDL Elite Case Lists guide (full version available at www.gdlelite.com) contains comprehensive lists of relevant cases broken down for 90 topics on the Graduate Diploma in Law. It is ideal for easy reference and revision purposes, saving students precious time and effort when compiling such information themselves.
This is a presentation on the terms of a contract. It covers the general concepts of terms of a contract. It is ideal for beginner to intermediate level Contract Law students
Courts use the term "unconscionable" to describe conduct that is either unjust or one-sided to benefit one party more than the other. In contract law, an unconscionable contract is one that no reasonable person would enter into without some very compelling reason. Those who do end up entering into unconscionable contracts tend to be poorly educated, living in poverty, or have been unable to find a fairer agreement elsewhere. Bhanu Prakash Singh Markam"Unconscionable Contract" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-5 , August 2018, URL: http://www.ijtsrd.com/papers/ijtsrd17083.pdf http://www.ijtsrd.com/humanities-and-the-arts/other/17083/unconscionable-contract/bhanu-prakash-singh-markam
Show Me My Money (Reisenfeld & Company v. The Network Group Inc..docxedmondpburgess27164
Show Me My Money (Reisenfeld & Company v. The Network Group Inc., p. 313)
Why does the court see this case as involving a quasi-contract as opposed to an actual contract? What other case law does the court rely on in finding precedent/support for compensating Reisenfeld? Does this decision appear to follow the golden rule guideline set forth in Chapter 2 (pp. 27 and 28)? Describe another example of an implied-in-fact or quasi-contract that you have experienced or is mentioned in the text.
Note: please read all the information correctly before you begin the assignment I have also copy and paste pages 27 and 28 that you would need to complete the assignment.
CASE
13-3
REISENFELD & CO. v. THE NETWORK GROUP, INC.;
BUILDERS SQUARE, INC.; KMART CORP. U.S. COURT OF APPEALS FOR THE SIXTH CIRCUIT 277 F.3d 856 U.S. App. (2002)
Network Group (“Network”) was contracted by BSI to assist in selling or subleasing closed Kmart stores in Ohio. A few years later, Network entered into a commission agreement with Reisenfeld, a real estate broker for Dick's Clothing and Sporting Goods (“Dicks”). Dicks then subleased two stores from BSI. According to executed assignment and assumption agreements signed in November of 1994, BSI was to pay a commission to Network. Network was then responsible, pursuant to the commission agreement with Reisenfeld, to pay a commission of $1 per square foot to Reisenfeld. There was no direct agreement made between BSI and Reisenfeld.
During this time, Network's sole shareholder was defrauding BSI. This shareholder was convicted of several criminal charges stemming from his fraudulent acts. Network was ordered by the district court to disgorge any commissions received from BSI, and BSI was relieved of any duty to pay additional commissions to Network. As such, Reisenfeld never received his commission related to the Dicks sublease.
Reisenfeld sued in state court for the $160,320 in commissions he had not been paid. In addition to suing Network, Reisenfeld also named BSI as a defendant. The suit alleged, among other things, that based on a theory of quasi-contracts, BSI was jointly and severally liable for the commission.
JUDGE BOOGS: . . .
A contract implied-in-law, or “quasi-contract,” is not a true contract, but instead a liability imposed by courts in order to prevent unjust enrichment. … Under Ohio law, there are three elements for a quasi-contract claim. There must be: (1) a benefit conferred by the plaintiff upon the defendant; (2) knowledge by the defendant of the benefit; and (3) retention of the benefit by the defendant under circumstances where it would be unjust to do so without payment. …
There is no disagreement as to the first two requirements. It is clear that Reisenfeld's work as broker benefited BSI and that BSI was aware of the work Reisenfeld was doing. The disagreement rests on the third requirement—whether it would be unjust for BSI to retain the benefit it received without paying Reisenfeld for it. … U.
AIS 2102 Introduction to Law of ContractPreeti Sikder
Learning Outcome: After completion of this lesson students will be able to-
a) Define contract
b) Classify contracts
c) Identify the legal source in determining contractual relationship
d) Determine the capacity of parties to enter into a contract
e) Identify the elements of a contract
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
How to Create Map Views in the Odoo 17 ERPCeline George
The map views are useful for providing a geographical representation of data. They allow users to visualize and analyze the data in a more intuitive manner.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
1. Mistake Law
INTRODUCTION
For a mistake to affect the validity of a contract it must be an "operative mistake", ie, a mistake which
operates to make the contract void. The effect of a mistake is:
At common law, when the mistake is operative the contract is usually void ab initio, ie, from the
beginning. Therefore, no property will pass under it and no obligations can arise under it.
Even if the contract is valid at common law, in equity the contract may be voidable on the ground of
mistake. Property will pass and obligations will arise unless or until the contract is avoided.
However, the right to rescission may be lost.
Unfortunately, there is no general doctrine of mistake - the rules are contained in a disparate group
of cases. This is also an area of confusing terminology. No two authorities seem to agree on a
common classification, and often the same terminology is used to cover different forms of mistake.
COMMON MISTAKE
A common mistake is one when both parties make the same error relating to a fundamental fact. The
cases may be categorised as follows:
(A) RES EXTINCTA
A contract will be void at common law if the subject matter of the agreement is, in fact, non-existent.
See for example:
Couturier v Hastie (1856) 5 HL Cas 673
In addition, s6 of the Sale of Goods Act 1979 provides that:
Where there is a contract for the sale of specific goods, and the goods without the knowledge of the
sellers have perished at the time when the contract was made, the contract is void.
Other relevant cases include:
Griffith v Brymer (1903) 19 TLR 434
Galloway v Galloway (1914) 30 TLR 531
Couturier v Hastie was interpreted differently by the High Court of Australia in:
Page 1 of 6
2. McRae v The Commonwealth Disposals Commission (1950) 84 CLR 377
(B) RES SUA
Where a person makes a contract to purchase that which, in fact, belongs to him, the contract is void.
For example see:
Cooper v Phibbs (1867) LR 2 HL 149
(C) MISTAKE AS TO QUALITY
A mistake as to the quality of the subject matter of a contract has been confined to very narrow
limits. According to Lord Atkin: "A mistake will not affect assent unless it is the mistake of both
parties, and is as to the existence of some quality which makes the thing without the quality
essentially different from the thing as it was believed to be." See:
In cases since Bell v Lever Bros the courts have not been over-ready to find a mistake as to quality
to be operative.
REMEDIES
Where a contract is void for identical mistake, the court exercising its equitable jurisdiction, can:
Refuse specific performance
Rescind any contractual document between the parties
Impose terms between the parties, in order to do justice.
Relevant cases include:
Cooper v Phibbs (1867) LR 2 HL 149
Rescission for mistake is subject to the same bars as rescission for misrepresentation.
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3. UNILATERAL MISTAKE
The case of unilateral mistake is where only one party is mistaken. The cases may be categorised as
follows:
(A) MISTAKE AS TO THE TERMS OF THE CONTRACT
Where one party is mistaken as to the nature of the contract and the other party is aware of the
mistake, or the circumstances are such that he may be taken to be aware of it, the contract is void.
For the mistake to be operative, the mistake by one party must be as to the terms of the contract
itself. See:
A mere error of judgement as to the quality of the subject matter will not suffice to render the
contract void for unilateral mistake. See:
Smith v Hughes (1871) LR 6 QB 597
REMEDY
Equity follows the law and will rescind a contract affected by unilateral mistake or refuse specific
performance as in:
Webster v Cecil (1861) 30 Beav 62
(B) MISTAKE AS TO IDENTITY
Here one party makes a contract with a second party, believing him to be a third party (ie, someone
else). The law makes a distinction between contracts where the parties are inter absentes and where
the parties are inter praesentes.
Contract made inter absentes
Where the parties are not physically in each others presence, eg, they are dealing by correspondence,
and one party is mistaken as to the identity, not the attributes, of the other and intends instead to
deal with some identifiable third party, and the other knows this, then the contract will be void for
mistake. See:
Cundy v Lindsay (1878) 3 App Cas 459
If the innocent party believes that he is dealing with a reputable firm, not a rogue, see:
Page 3 of 6
4. King's Norton Metal Co Ltd v EdridgeMerrett Co Ltd (1897) TLR 98
Two conclusions are commonly drawn from these two cases: (1) that to succeed in the case of a
mistake as to identity there must be an identifiable third party with whom one intended to contract;
and (2) the mistake must be as to identity and not attributes.
Contract made inter praesentes
Where the parties are inter praesentes (face to face) there is a presumption that the mistaken party
intends to deal with the other person who is physically present and identifiable by sight and sound,
irrespective of the identity which one or other may assume. For such a mistake to be an operative
mistake and to make the agreement void the mistaken party must show that:
(i) they intended to deal with someone else;
(ii) the party they dealt with knew of this intention;
(iii) they regarded identity as of crucial importance; and
(iv) they took reasonable steps to check the identity of the other person
(see Cheshire &Fifoot, Law of Contract, p257-263).
Even where the contract is not void, it may be voidable for fraudulent misrepresentation but if the
goods which are the subject-matter have passed to an innocent third party before the contract is
avoided, that third party may acquire a good title. The main cases are as follows:
Phillips v Brooks [1919] 2 KB 243
The exception to the above rule is that if a party intended to contract only with the person so
identified, such a mistake will render the contract void:
Lake v Simmons [1927] AC 487
MUTUAL MISTAKE
A mutual mistake is one where both parties fail to understand each other.
WHERE THE PARTIES ARE AT CROSS PURPOSES
In cases where the parties misunderstand each other's intentions and are at cross purposes, the court
will apply an objective test and consider whether a 'reasonable man' would take the agreement to
mean what one party understood it to mean or what the other party understood it to mean:
Page 4 of 6
5. If the test leads to the conclusion that the contract could be understood in one sense only,
both parties will be bound by the contract in this sense.
If the transaction is totally ambiguous under this objective test then there will be no
consensus ad idem (agreement as to the same thing) and the contract will be void:
Wood v Scarth (1858) 1 F&F 293
Raffles v Wichelhaus (1864) 2 H&C 906
Scriven Bros v Hindley& Co [1913] 3 KB 564
REMEDY
If the contract is void at law on the ground of mistake, equity "follows the law" and specific
performance will be refused and, in appropriate circumstances, the contract will be rescinded.
However, even where the contract is valid at law, specific performance will be refused if to grant it
would cause hardship. Thus the remedy of specific performance was refused in Wood v Scarth
(above).
A recent case is:
Nutt v Read (1999) The Times, December 3.
MISTAKE RELATING TO DOCUMENTS
NON EST FACTUM
As a general rule, a person is bound by their signature to a document, whether or not they have read
or understood the document: L'Estrange v Graucob [1934] 2 KB 394. However, where a person
has been induced to sign a contractual document by fraud or misrepresentation, the transaction will
be voidable.
Sometimes, the plea of non est factum, namely that 'it is not my deed' may be available. A successful
plea makes a document void. The plea was originally used to protect illiterate persons who were
tricked into putting their mark on documents. It eventually became available to literate persons who
had signed a document believing it to be something totally different from what it actually was. See,
for example:
Foster v Mackinnon (1869) LR 4 CP 704
The use of the rule in modern times has been restricted. For a successful plea of non est factum two
factors have to be established:
(i) the signer was not careless in signing; and
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6. (ii) there is a radical difference between the document which was signed and what the signer
thought he was signing.
Note: Because of the strict requirements, it may be better for the innocent party to bring a claim
based on undue influence.
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