disputes that can occur when starting a contract

Question 1

mistakes

Answer 1

• when people have a different understanding of a contract

includes:
- shared mistake
- common mistake
- one sided mistake

Question 2

shared mistakes (common mistake)

Answer 2

• both parties have made the same mistake
• shared the same mistake understanding of terms

Question 3

one- sided mistake (unilateral mistake)

Answer 3

• when a person misleads themselves, usually has no recourse

Question 4

what is misrepresentation

Answer 4

• false misleading statements that induce a person into a contract

includes:
- innocent misrepresentation
- fraudulent misrepresentation
- negligent misrepresentation

Question 5

innocent misrepresentation

Answer 5

• misleading another without knowing/being careless
• only remedy for victim is rescission

Question 6

fraudulent misrepresentation

Answer 6

• intentionally and knowingly misleading another to enter a contract
• remedies are rescission or remedy of damages

Question 7

negligent misrepresentation

Answer 7

• person making misleading statements should have know what they were saying was false
• wrongdoer was careless
• remedies include rescission or damages

Question 8

rescission

Answer 8

the cancellation of a contract or an agreement