Reformation

Question 1

Reformation defined

Answer 1

when a court modifies a contract or deed to conform to the understanding of the parties

Question 2

Reformation is only available in the case of?

2

Answer 2

1. fraud in the inducement; or,

2. mistake in execution

Question 3

if the court determines there was no valid contract to begin with, the equitable remedy available is

Answer 3

Rescission

≠ reformation

Question 4

Fraud in the inducement means

Answer 4

if one party in the contract fraudulent represents the contents of the contract to get the other party to sign

-contract will be reformed to reflect the other party’s understanding

Question 5

If either party claims to have made a mistake in entering into the contract, reformation is

Answer 5

not available because there was never a meeting of the minds. The proper remedy here is rescission.

Question 6

Reformation in Mutual Mistake in Execution occurs when?

Answer 6

Both parties are mutually mistaken that the written instrument goes against their original oral agreement

Question 7

Reformation for unilateral mistake in execution

Answer 7

If one party knows that the written instrument does not embody the true agreement and the other party does not know

-Court can reform to true agreement

Question 8

Is parol evidence rule applicable to reformation?

Answer 8

No, court has to know intent of parties