Difference between revisions of "Clinician Guide for Consumer Transactions (11:X)"

Misrepresentation occurs when a party is induced to enter a contract based on a false statement. The remedies available depend on the nature of the  misrepresentation. See section IV.I for more information on misrepresentation. 3.Frustration If performance of the contract is impossible due to circumstances that arise after the contract was signed and that were outside of either party’s control then the contract can be found to have been frustrated, and ongoing obligations under the contract will cease to apply. Once frustration is found to have occurred at common law, the Frustrated Contract Act will apply to adjust the rights and liabilities of each party and to appropriate restitution. 4.Mistake Mistake is defined at common law as a fundamental misunderstanding between the parties to a contract. There are three categories of mistake: common, mutual, and unilateral. A common mistake exists when both parties make the same mistake. For example, the subject matter of the contract may not exist or was destroyed prior to the agreement. A mutual mistake exists when the parties make a different mistake, e.g. a purchaser wanted type A widgets and the vendor thought he or she ordered B widgets, so there is disagreement as to a term of the contract. This is usually an offer and acceptance issue, for both parties have to come to agreement for there to be a contract in the first place. A unilateral mistake exists when one party is mistaken about the obligations that he or she has assumed. This is a difficult defence because a court is  unlikely to excuse the party from obligations on account of his or her unilateral mistake, unless the other party was aware of the mistake.