mistake. so sad to be a mistake.

Question 1

every contract contains risks of:

Answer 1

non performance, unexpected event occurring, unexpected fact occurring

Question 2

contract risk

Answer 2

either a lack of complete and accurate factual info at the the time of contracting OR a lack of clairvoyance as the the course of subsequent events impacting the performance of the contract or the value of such performance to the contracting parties (something happens and you’ve assumed the risk)

Question 3

who will bear the risk?

Answer 3

allocated expressly in the parties contract or through general default rules through the UCC.

Question 4

sellers risk

Answer 4

bear the greater risk in relation to performance

Question 5

buyers risk

Answer 5

greater risk related to the value of the goods

Question 6

misrepresentation

Answer 6

misrepresentation: fact, that was material, that was justifiably relied upon by the victim, reasonably relied upon to the victim’s detriment, injury resulted

Question 7

mistake (mutual) has the 3 MS

Answer 7

mistake of fact
materail
mutually made

Question 8

mistake

Answer 8

mistake is a belief that is not in accord with the facts

Question 9

mistake of fact

Answer 9

at time of contract. recoverable

Question 10

mistake of law

Answer 10

at time of contracting. recoverable.

Question 11

mistake of prediction (future facts/events)

Answer 11

not recoverable

Question 12

mistake of opinion

Answer 12

not recoverable

Question 13

what is material

Answer 13

mistake is large or serious and has an impact on the agreed exchange
the resulting imbalance is so severe that a party cannot be fairly required to carry out the contract

Question 14

mutual mistake

Answer 14

-both parties

at time contract was made to a basic assumption, material effect, unless he bears the risk of the mistake under 154

Question 15

unilateral mistake

Answer 15

where a mistake of one party at the time a contract was made as to basic assumption on which he made the contract has a material effect, unless he bears the risk of the mistake AND either the effect would make it unconscionable or the other party had reason to know of the mistake and his fault caused the mistake

Question 16

basic assumption

Answer 16

death-well duh
destruction-of specific thing necessary for contract (house)

courts manipulate the substance v quality problem to get what they want in classic sherwood

Question 17

modern restatement

Answer 17

focus is not on substance or quality but rather on materiality

Question 18

mutual mistake (which blameless party bears the loss)

Answer 18

under 152-voidable if at time contract was made the basic assumption, material effect, must not be one to which the party seeking relief bears the risk

under 154-party bears risk when it is allowed to him by the agreement or he has limited knowledge and accepts that fact

Question 19

mutual mistake remedy-avoidance

Answer 19

cancellation or termination of a contract

Question 20

mutual mistake remedy

Answer 20

default rule is rescission and restitution

Question 21

mutual mistake remedy -reformation

Answer 21

typographical error or overlooked format issue

Question 22

historical unilateral mistake

Answer 22

had to obvious palpable mistake, truly one sided

Question 23

modern unilateral mistake

Answer 23

no longer requires obvious mistake. plus effect would be unconscionable or other party knew/had reason to know of mistake

Question 24

unilateral contract 4 prong test

Answer 24

mistake was induced by party seeking to benefit, no negligence, denial would be inequitable, position of opposing party has not so changed that it would be unjust

requires non-negligence of requesting party

Question 25

2 prong test

Answer 25

mistake did not result from an inexcusable lack of due care AND d's position did not so change in reliance that it would be unconscionable to set aside the agreement. requires non-negligence of requesting party

Question 26

3 prong test

Answer 26

D was mistaken about facts, effect of mistake makes unconscionable OR claimant had reason to know, D did not bear the risk OR was aware that the other party had limited knowledge and proceeded anyway requires seeking party did not bear the risk

Question 27

expectation interest damages

Answer 27

benefit of the bargain would have been in if contract had not been formed

Question 28

reliance interest damages

Answer 28

interest in being reimbursed for loss caused by reliance on the contract by being put in as good a position as he would have been in if not made

Question 29

restitution interest damages

Answer 29

interest in having restored to the party any benefit that he has conferred on the other party.