Asked by
Lydia Ka'aloa
on Nov 23, 2024Verified
Jax, a university student commuted to and from classes by public transit. He decided that he must buy a car because the bus service was terrible. A friend was discussing this problem with Jax and said that he wanted to sell his car in order to purchase a motorcycle. Knowing the car's good condition, Jax said he would buy it. Jax's friend told him to come by to pick up the car in two days. Neither of them knew that the friend's roommate had borrowed the car that day and had destroyed it in an accident. This is not a cause of mistake of fact because the two were both clear as to what was the subject matter of the contract.
Mistake of Fact
A misunderstanding or incorrect belief regarding a fact that is material to a contract at the time of its formation, potentially rendering the contract voidable.
- Distinguish among unilateral, mutual, and common errors during the formation of contracts.
Verified Answer
SM
Learning Objectives
- Distinguish among unilateral, mutual, and common errors during the formation of contracts.
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