Contract and Legally Binding Agreement Essay example

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HARTLY AND THE AUTO DEALER Tameeka Brown Hartly and The Auto Dealer Southern New Hampshire University October 20, 2013 Hartly & The Auto Dealer What do you think about this situation? Should parties to a sales contract be able to rescind a contract because of mutual mistake of fact? Why or why not? Did either party act unethically in this case? Why or why not? What application does the UCC have here? Finally, in the overall context of contract law, are there any winners or losers when a contract is rescinded based on mutual mistake of fact? Why or why not? In my studies of the case, I read about Sherwood verses Walker in the case of Rose the cow. In brief Walker was selling Rose to…show more content…
A contract is a legally binding agreement. 1 By one definition, "a contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty." 2 Contracts arise out of agreements, so a contract may be defined as an agreement creating an obligation. The substance of the definition of a contract is that by mutual agreement or assent, the parties create enforceable duties or obligations. That is, each party is legally bound to do or to refrain from doing certain acts (Twomey & Jennings, 2012 p.265). By definition of contract the customer has the right to rescind the contract on the grounds of mutual mistake of fact. Mutual mistake of fact says that at the time of agreement both parties entered into a contract without knowledge or understanding of a fail in their agreement. A mistaken understanding in this instance the contract is voidable by the party most affected by the mistake (Twomey & Jennings, 2012 p.285). Was either party unethical? Since both parties are experiencing a mutual mistake of fact and being unethical would imply that one of the parties knew the situation surrounding the specifications of the vehicle of purchase. My findings support there was no unethical acts performed in this case. The UCC РUniform Commercial Code says, Ҥ 2-601. Buyer's Rights on Improper Delivery. Subject to the provisions of this Article on breach in installment contracts
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