BLW Ch 7

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BLW Ch 7
2014-05-06 17:35:01

Chapter 7
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  1. 7.1  Williams (P) v. Glash
           Source of Law: State court cases
    • Williams was in a car crash and the insurance company wanted to settle her case asap.
    • There was a delayed injury and she wanted to out of the settlement
    • By Mutual Mistake, the judge let her out of the contract
  2. Mutual Mistake
    • When both parties are mistaken as to the basic assumptions on which the contract was made at the time of the contract consummated.
    • If Mistaken has a material effect on the agreed performance, the contact then becomes voidable at the option of the adversely affected party.
  3. 7.3  Sherwood v. Walker (
           Was there a mutual mistake?
    • Yes, there was a mistake. 
    • Promise for a promise is a "deal"(Contract). (General Rule)
  4. 7.3  Mistake of Fact or Value
    There is a distinction between the a mistake in fact and a mistake that goes to the substance of the transaction, when both parties were (are) wrong.
  5. 7.4  Estey Organ Comp v. Lehman
           Was there a mutual mistake?
    • No, there was only a one sided agreement.
    • The buyer held the merchandise and kept it.
    • There was a mistake with respect to the price of the goods where each party had a different opinion about the price they agreed to. 
  6. 7.4  Source of law
    Alleged contract; State court cases
  7. 7.5  City of Lawrenceville v. Ricoh Electric Inc.
    • City of Lawrenceville was arguing a mutual mistake
    • No fraud or hiding of info took place when Ricoh and City signed the conract
  8. 7.5  Source of Law
    • State court cases
    • This was a one sided mistake
  9. Unilateral mistake and bearing the risk
    • Where one of the parties to the agreement is mistaken as to the facts composing the agreement,
    • The mistaken party will not be allowed to void the contract