Excuse

Question 1

Mistake

Answer 1

A legal mistake for which a court may grant a remedy is a belief that is not in accord with the facts as to a basic assumption on which the contract is based that materially affects the performance of the contract

Question 2

Unilateral mistake

Answer 2

When only one of the parties is mistaken as to an essential element of the contract existing when the contract was made, and the mistaken party did not bear the risk of the mistake, either party can enforce the contract on its terms unless the mistake relates to a basic assumption of the contract and has a material impact on the deal

Question 3

Mutual mistake

Answer 3

Occurs when both parties are mistaken as to an essential element of the contract. There must be a substantial difference between the deal as it was contemplated and the actual deal, with no intent by the parties to take a risk on that element of the transaction

Question 4

Remedies

Answer 4

A contract is generally voidable by the party that was adversely affected by the mistake

Question 5

Reformation

Answer 5

When a writing that evidences or embodies an agreement in whole or in part fails to express the agreement because of a mistake of both parties as to the contents or effect of the writing

Question 6

Misunderstanding

Answer 6

Because a contract is a meeting of the minds, no contract exists when both parties do not intend the same meaning. If the parties think they are agreeing to the same terms, but in fact assent to different terms, and neither party knows or should know that there is a misunderstanding, then there is no contract

Question 7

Misrepresentation

Answer 7

Made in connection with an agreement may prevent the formation of the contract or make the contract voidable by the adversely affected party

Question 8

Undue influence

Answer 8

Can occur in a relationship when one party is dominant and other dependent, either due to lack of expertise or experience, or because the dependent person has diminished mental capacity

Question 9

Confidential relationship

Answer 9

When one party to a contract has a fiduciary relationship to the other, the burden of proving that the contract is fair is usually on the fiduciary

Question 10

Duress

Answer 10

Any wrongful act or threat that deprives a party of meaningful choice constitutes duress, when a party’s agreement is the result of physical duress, the contract is void, when the duress is in nature of a threat, the contract is voidable