Exam 8: Grounds Upon Which a Contract May Be Impeached: Mistake

Joe buys two tickets for a baseball game. Two days after he purchases the tickets the game is cancelled. Joe, wanting to get his money back, sells the second ticket to Mary. Which of the following is NOT true?

Where a party inadvertently uses the wrong words in stating the terms of a contract, and another party enters into the contract, the court may set aside the contract if a reasonable bystander would conclude that the party made a mistake.

Where a mistake is made in a contract, and the contract contemplates some level of risk, then

A mistake in contract law that leads to a reversal of a contract can be one that is made by

Jack, a sales agent, approaches Edmund and tells Edmund about a product he is selling. Jack convinces Edmund to purchase the product and Edmund is asked to sign a document. Later Edmund realizes that the document is very different from what he was told. Edmund may plead non est factum.

James says to Jack. I am selling my "Toyoda" for $500. Would you like to buy it. Jack, believing that James was referred to his automobile, replies, "yes I'll buy your Toyota for $500." Jack pays $500 and James presents him with a Japanese doll called Toyoda. Jack asks for his money back because he misunderstood James. Should this matter go to court, the court will most likely find that

When a Court grants rectification of a contract it

Explain the meaning of rescission.

Mistake takes place after the formation of the contract, and frustration occurs at the time of the formation of the contract.

Frustrating events are different from mistakes. Explain.

Frustrating events are the same as mistakes.

Where the wrong words are inadvertently used by a party in stating the terms of a contract, resulting in a mistake, the contract will be binding on the party if it was reasonable for the other party to rely on the words used.

Jonathan sells crates of tomatoes on board the SS Apapa to Margaret. At the time of the sale, both parties are unaware that the crates were washed overboard. What is the status of the contract between Jonathan and Margaret.

A party who seeks rectification of a document must satisfy the conditions for rectification. Explain.

Explain the concept of non est factum and how this concept has evolved over the years.

Where a party claims that an agreement is improperly recorded, that party may ask the court

What are the two main types of mistake in contract law?

A mistake in contract law can lead to a reversal of a contract if

If at the time of entering into a contract unbeknown to the purchaser or the seller, the subject matter did not exists, the contract is

McKenzie purchases goods from Dormond. Later McKenzie goes to court and the court declares that the contract between McKenzie and Dormand is void. This means that