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Introduce to Busines Law

   

Added on  2020-03-15

8 Pages1540 Words69 Views
Running head: BUSINESS LAWMistake and MisrepresentationName of the student:Name of the university:Author note

1BUSINESS LAWExercise 10.11.Void: (D) to cancel, revoke or repeal or to treat a contract as is it never existed.Voidable: (A) can be declared void at the option of the innocent parties. Legaloutcomes can be achieved until option is existed. Rescind: (C) legally non-existent. No legal outcomes are possible. A contract treatedas if it never existed.Rescission :(B) to put a contract to an end such a way as to treat it as if it is neverexisted.2.In certain times, it has been observed that one party to a contract get the consent of theothers by way of coercion or undue influence (Chew 2017). In this process, the aggrievedparty shall have the power to cancel the contract. This is known as rescind a contract.However, the party will lose this right by way of following:If the party agrees to continue the contract even after knowing his right torescind the contract. If the position of the aggrieved party has been lost or the subject matter of thecontract has been destroyed, the party will lose the right.It is required that the aggrieved party will apply the right within appropriatetime.

2BUSINESS LAW3.The legal remedy for misrepresentation is to make the contract voidable as per thewill of the innocent party.The legal remedy of mistake is to declare the contract void at the very inception of thecontract. Unilateral mistakes are such kind of mistake (Poole 2016).4.Equitable remedies are available for operating the conscience of the defendant andthey are based on the discretion of the court (Gergen 2013). In case of mistake, the commonlaw prescribes the remedy to revoke the contract treated as void at the beginning and incertain situation; the contract can be voidable in nature. In this case, an equitable remedy canalso be claimed. In case of misrepresentation, the grounds of common law will be applied and there isno application of equitable remedy in this case. Exercise 10.2Besides mistake of law and mistake of facts, mistake can be divided into threecategories. They are: unilateral mistake, mutual mistake and common mistake. When oneparty to a contract do the mistake, it cause unilateral mistake. Caveat emptor can be a goodexample of it. When both the parties to the contract had caused mistake, it becomes mutualmistake. Meeting of mind plays an important role in this case. An important case in thisbehalf is Raffles v Wichelhaus (1864). When in a contract, both the parties do similarmistakes regarding certain facts, it will be treated as common mistake. The principle ofcommon mistake has been proved in the case of Bell v Lever Bros. Ltd [1932].

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