Unilateral Mistake. When one of the parties to the contract is under a mistake as to the matter of fact, it is known as unilateral mistake. A contract is not voidable merely because it was caused by one of the parties to it being under a mistake. When there is a mistake as to the identity of the person contracted with. ( Xxxxxx Vs Potter) When there is a mistake as to the nature of the contract. (Xxxxxx Vs Xxxxxxxxx) According to section 23, The object of the agreement is lawful unless “it is forbidden by law or is of such a nature that, if permitted, it would defeat the provisions of any law or is fraudulent or it involves or implies injury to the person or property of another or the court regards it as immoral or opposed to public policy. Every agreement of which the object or consideration is unlawful is void. Forbidden by law- Giving bribe to get a job, selling pirated movie cds. Defeats the provision of any law- Xxxxxxxxxx Vs Goppayya If it is fraudulent – Swindling the public money If it involves or implies harm to the person or property – Xxxxxxxxx vs Xxxxx Xxxxxx If the court regards it as immoral- Baivijli Vs Nansa Nagar If the court regards it as opposed to public policy- black marketing, adulteration, agreement with alien enemy. An agreement in restraint of marriage. An agreement in restraint of trade. An agreement in restraint of legal proceeding. A wager contract is a contract in which one person promises to another to pay money or money’s worth by the happening of an uncertain future event in consideration for other person’s promise to pay if the event does not happen. There are two persons. There must be an uncertain future event. No control over the event by both the parties. There must be a reciprocal promise. Others are not interested in the contract. In a wrestling bout, A tells B that wrestler no.1 will win. B challenges the statement of A. They bet with each other over the result of the bout. This is a wagering agreement. A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. It is also called a conditional contract. Essential Elements of a Contingent Contract: There are two persons. There must be an uncertain future event. Some control over the event but not absolute control. There is no reciprocal promise between the persons. Others may be interested in the contract. It is a valid contract. Contingent contracts dependent on happe...
Unilateral Mistake. In mutual mistake cases, both parties are operating under the same misperception as to material facts.127 In unilateral mistake cases, only one party has an erroneous perception as to the facts.128 In order to avoid a contract on the grounds of unilateral mistake, the adversely affected party must show the requirements necessary for mutual mistake. In addition, the adversely affected party must also show either that the effect of the mistake would make enforcement of the contract unconscionable or that the other party had reason to know of the mistake, or caused the mistake.129 If the doctrinal distinction between unilateral and mutual mistake is weak, the factual distinction is sometimes imperceptible.130 Not surprisingly, avoiding parties often seem confused about whether they should claim mutual or unilateral mistake, as the same facts often give rise to claims for both defenses.131 Courts generally have been reluctant to allow avoidance in cases where parties have sought relief on the grounds of unilateral mistake.132 Typically, successful cases have involved technical or computational errors.133 For example, in X.X. Xxxxxx Construction Co. v. City of Los 126. See id. at 455 (majority opinion).
Unilateral Mistake an error on the part of one of the parties to the contract. Mistake > Nature of the Agreement (not reading a contract or not knowing what it says). This cannot be an excuse to avoid a contract. Mistake > The Identity of a Party • If the mistaken identity is made in person, it will not prevent a binding contract. xxxx://xxx0xx.xxx/home/morethanadozenhomeownersonlongislandlosehomesinmortgagescam/990107/
Unilateral Mistake. Where one party knows of a mistake and the other party does not know, the court will award the mistaking party damages. Since Xxxxxx signed the contract realizing that the Califronia coastline was omitted and would have still received the $450,000, he is the non mistaken party, and Xxx should get damages for the non receipt of the California coastline painting. Xxx should be awarded damages of the fair market value of the California Coastline. REMEDIES: Damages:
Unilateral Mistake when ONE party holds an incorrect belief about the facts related to the contract • (Ex. Not reading or not carefully reading a contract, signing a contract with unfamiliar language)
