Chapter 15- Mistakes, Fraud, and Voluntary Consent

Question 1

Unilateral Mistakes of Fact

(Mistakes)

Answer 1

is made by only one the parties.

Contract is enforceable, unless other party knew or should have known that mistake was made. or the mistake was due to substantial mathematical error.

Question 2

Bilateral (Mutual) Mistakes of Fact

(Mistakes)

Answer 2

a mutal misunderstanding concerning a basic assumption on which the contract was made.

contract can be recinded by either party.

Question 3

Fradulent Misrepresentation

Answer 3

1. a misrepresentation of material fact must occur.
2. an intent to deceive.
3. the innocent party must justifiably rely on the misrepresentation.
4. to collect damages, a party must have been harmed as a result of the misrepresentation.