Explain the three kinds of mistakes that can be made by either party while entering a contract. When are contracts involving mistakes rescinded?
What will be an ideal response?
A mistake occurs where one or both of the parties to a contract have an erroneous belief about the subject matter, value, or some other aspect of the contract. Mistakes may be either unilateral or mutual. A unilateral mistake is a mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract. In most cases of unilateral mistake, the mistaken party will not be permitted to rescind the contract. The contract will be enforced on its terms. Mutual mistake of a material fact is a mistake made by both parties concerning a material fact that is important to the subject matter of a contract. If there has been a mutual mistake, the contract may be rescinded on the grounds that no contract has been formed because there has been no "meeting of the minds" between the parties. A mutual mistake of value exists if both parties know the object of the contract but are mistaken as to its value. Here, the contract remains enforceable by either party because the identity of the subject matter of the contract is not at issue.
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Some of the cash flows shown on a time line can be in the form of annuity payments but none can be uneven amounts.
Answer the following statement true (T) or false (F)
The following information is available for Montrose Company at December 31: Cash in bank account$8,540 Petty cash$250 Short-term investment$10,400 Checks from customers$1,350 Equipment$805 Treasury bill maturing in 60 days$10,000 Money orders$290 A three-year certificate of deposit maturing in three years$6,000 Based on this information, the amounts considered Cash and Cash Equivalents, respectively on December 31 are:
A. Cash $8,790; Cash equivalents $26,400 B. Cash $19,190; Cash equivalents $16,000 C. Cash $10,430; Cash equivalents $20,400 D. Cash $11,235; Cash equivalents $26,400 E. Cash $8,540; Cash equivalents $22,290
The business entity concept means that
A) the owner is part of the business entity B) an entity is organized according to state or federal statutes C) an entity is organized according to the rules set by the FASB D) the entity is an individual economic unit for which data are recorded, analyzed, and reported
Ethical concerns over managerial attempts to manage organisational culture in order to shape employee behaviour, centres on the extent to which it seeks to create of employees which of the following:
a. willing slaves b. robots c. passive actors d. unthinking individuals