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The Contract Agreement Between The Parties Essay

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#1 In order for a contract to be enforceable, there must be a mutual agreement between the parties. One way to contest a contract is by proving there is no mutual agreement or a lack of assent; therefore, it is important to have genuine assent before entering into a contract. In cases where the assent is not genuine, the contract may be unenforceable. Mistakes and Fraud are two of the reasons contracts lack genuine assent. Contract mistakes can either be unilateral, a mutual mistake of a material fact, or mutual mistake of value. A mutual mistake of value occurs when the parties are mistaken in regards to the value of the object of the contract. For instance, Jane sells a baseball card to Jim for $1; Jim thinks the card would be a perfect gift for his young nephew and purchases it from Jane. Before Jim gives the card to his nephew, a friend informs him the card is very valuable and advises him to get it appraised. Jim discovers the card is worth $20,000 and later sales it for $19,000. Since a mutual mistake of value is unenforceable, Jane cannot sue Jim for the profits from the sale. A unilateral mistake occurs when “only one party is mistaken about the material fact regarding the subject matter of the contract”. In most cases where there is a unilateral mistake, the mistaken party cannot cancel the contract; therefore, the contract remains enforceable. A mutual mistake of a material fact, unlike a unilateral mistake, is where both parties are mistaken about a material
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