Excuses

Question 1

Under CL, what is mistake?

Answer 1

A mistake is a belief contrary to the facts.

Question 2

What 2 kinds of mistake are there?

Answer 2

1. Unilateral mistake
2. Mutual mistake

Question 3

What elements comprise mutual mistake?

Answer 3

Where a (a) mistake of both parties (b) at the time a contract was made as to a (c) basic assumption on which the contract was made has a (d) material effect on performance, the contract is voidable by the adversely affected party (e) unless he bears the risk of the mistake.

Question 4

What elements comprise unilateral mistake?

Answer 4

Where a (a) mistake of one party (b) at the time a contract was made as to a (c) basic assumption on which the contract was made has a (d) material effect on performance, the contract is voidable by the adversely affected party (e) unless he bears the risk of the mistake.

Question 5

When does a party bear the risk of mistake?

Answer 5

(a) the risk is allocated to him by agreement of the parties,
(b) he is knowingly ignorant of facts related to the mistake but treats his limited knowledge as sufficient, or
(c) the risk is allocated to him by the court on the ground that it is reasonable in the circumstances to do so.

Question 6

What is frustration

Answer 6

Occurs when a principle purpose is frustrated, through no fault of the party, by an event not contemplated by the contract, he is discharged from his duty to perform, (e) unless the language or the circumstances indicate the contrary.

** cannot be reasonably foreseeable.

Question 7

What is impracticability?

Answer 7

Where a party’s principle purpose is made impracticable without his fault by an occurrence that the contract assumed would not occur, he is discharged from his duty to perform.

** cannot be reasonably foreseeable.

• Financially difficult ≠ impracticable

Question 8

What if there is supervening event that creates temporary impractibility?

Answer 8

It may temporarily delay rather than excuse performance.