Discuss the effect of fraud and mistake as to law in contracts.
Answers
Answer:
Unilateral Mistake makes a contract voidable
If any unilateral mistake is induced by fraud or misrepresentation, then the contract is voidable for that party who has done the mistake in the contract. . Then, Contract will be voidable at the option of 'B'.
Answer:
Misrepresentation occurs when a person makes an untrue assertion of fact (or in some cases an omission of fact). It is based on someone's actions.
Misrepresentation occurs when a person makes an untrue assertion of fact (or in some cases an omission of fact). It is based on someone's actions.Fraud is essentially knowing or intentional misrepresentation, and is differentiated from negligent misrepresentation and innocenent misrepresentation. Negligent misrepresentation occurs when a person did not know he or she was making a misrepresentation when he or she should have known that he or she was doing so. Innocent misrepresentation is where there was a misrepresentation but the person making the misrepresentation had no duty to know that it was.
Misrepresentation occurs when a person makes an untrue assertion of fact (or in some cases an omission of fact). It is based on someone's actions.Fraud is essentially knowing or intentional misrepresentation, and is differentiated from negligent misrepresentation and innocenent misrepresentation. Negligent misrepresentation occurs when a person did not know he or she was making a misrepresentation when he or she should have known that he or she was doing so. Innocent misrepresentation is where there was a misrepresentation but the person making the misrepresentation had no duty to know that it was.Assuming that the other party relied on the untrue statement and was justified in doing so, any of the three forms of misrepresentation could be grounds for recission of a contract; however, fraud and negligent misrepresentation could also allow for a cause of action in tort, and, especially for fraud, a claim for punitive damages.
Mistake is where someone believes that a fact was true when in fact it was not. It is based on someone's belief.
Mistake is where someone believes that a fact was true when in fact it was not. It is based on someone's belief.Usually, when both parties are mistaken about the fact, either party may have the contract voided. The classic case is where the parties contracted to sell and buy a cow that both parties believed to be barren; when it was found that the cow was actually pregnant, the seller sought to take back the cow because it was not what both parties believed it was -- seller won.
Mistake is where someone believes that a fact was true when in fact it was not. It is based on someone's belief.Usually, when both parties are mistaken about the fact, either party may have the contract voided. The classic case is where the parties contracted to sell and buy a cow that both parties believed to be barren; when it was found that the cow was actually pregnant, the seller sought to take back the cow because it was not what both parties believed it was -- seller won.When only one person makes a mistake, then a contract is usually not voidable unless the mistake would make enforcing the contract "shocking to the conscience," or where the other party was somewhat at fault with regard to the mistake.
Mistake is where someone believes that a fact was true when in fact it was not. It is based on someone's belief.Usually, when both parties are mistaken about the fact, either party may have the contract voided. The classic case is where the parties contracted to sell and buy a cow that both parties believed to be barren; when it was found that the cow was actually pregnant, the seller sought to take back the cow because it was not what both parties believed it was -- seller won.When only one person makes a mistake, then a contract is usually not voidable unless the mistake would make enforcing the contract "shocking to the conscience," or where the other party was somewhat at fault with regard to the mistake.Lastly, there is also the principle of mistake of law. This is basically a mistake as to what the law is concering something about the contract. It will not make a contract voidable because of the principle ignorantia iuris non excusat (ignorance of the law is no excuse), unless one party basically caused the other party to believe in the mistaken law, in which case the contract may be voidable.