Mutual Assent Flashcards
How is a doubtful provision in a written instrument construed?
It is construed against the party responsible for drafting it.
What is required for mutual assent between parties?
There must be a reasonable manifestation of mutual assent between the parties.
What factors should be considered when analyzing mutual assent?
Factors include capacity and disparity of value.
What does ‘capacity’ refer to in the context of mutual assent?
The individual must possess the capacity to understand the nature and consequences of the instrument at the time of assent.
What does ‘disparity of value’ indicate?
A disparity between the offered amount and the actual value of the thing is an indication of unreasonableness.
What is required for the offeree regarding terms?
The offeree has to be ‘put on notice’ for terms.
What is the duty of the offeree when assenting to terms?
There is a duty to read and understand the terms that you are assenting to.
Is intention to be legally bound essential for contract formation?
Neither real nor apparent intention that a promise be legally binding is essential to the formation of a contract.
What may prevent the formation of a contract?
A manifestation of intention that a promise shall not affect legal relations may prevent the formation of a contract.
Mutual Mistake
Under contract law, a contract may be rescinded based on the doctrine of mutual mistake if there is a mistake of fact held mutually by the parties that materially affects the agreed-upon exchange.
Unilateral Mistake
A contract may be rescinded on the basis of a unilateral mistake if: (1) the mistake was so fundamental in character that there was no meeting of the minds, (2) there was no gross negligence on the part of the party seeking rescission, (3) no intervening rights have accrued, (4) the parties may still be placed in status quo, and (5) the party seeking rescission did not induce the mistake through negligence.
Mistake
A contract may be rescinded based on mistake of fact if the party seeking rescission made a mistake regarding a basic assumption in the contract, the mistake had a material adverse effect on the agreed-upon exchange, the party did not bear the risk of mistake, and enforcement of the contract would be unconscionable on account of the mistake.
