Defenses: misrepresentation, nondisclosure and mistakeDefensas: misrepresentation, omisión de información y error
A buyer learns from a private source that a new highway will triple the value of a seller's farmland and buys it without saying so. The seller later sues to rescind for nondisclosure. Under Laidlaw and R.2d § 161, the most likely result is that the contract is:
Laidlaw: no duty to volunteer extrinsic information equally accessible to both; the limit is active deception or a § 161 situation.Laidlaw: no hay deber de revelar información extrínseca accesible a ambos; el límite es el engaño activo o un supuesto del § 161.
Laidlaw v. Organ; R.2d § 161
Same facts, but when the seller's agent asks, “Any news that would affect the price?” the buyer answers, “Nothing I know of.” Now the contract is:
An affirmative false statement of fact, made knowingly, that induces assent makes the contract voidable (R.2d §§ 159, 162, 164).Una afirmación falsa de hecho, hecha a sabiendas, que induce el consentimiento hace anulable el contrato (R.2d §§ 159, 162, 164).
R.2d §§ 159, 162, 164
Both parties believe a violin is a 19th-century copy and agree on $2,000. It is in fact an original worth $200,000. The seller seeks to avoid the contract. Under R.2d §§ 152 and 154:
Mutual mistake: basic assumption, material effect, and the party seeking avoidance must not bear the risk under § 154 (agreement, conscious ignorance, or reasonable allocation).Error mutuo: supuesto básico, efecto material, y quien pide la anulación no debe soportar el riesgo bajo el § 154 (pacto, ignorancia consciente o asignación razonable).
R.2d §§ 152, 154
A contractor's bid omits a $40,000 line item by clerical error; the owner, who received five other bids near $300,000, accepts the $255,000 bid. Which element of unilateral mistake is easiest for the contractor to prove?
Unilateral mistake (§ 153) adds a fourth requirement: unconscionability, or that the other party knew, had reason to know, or caused the mistake. A bid far below the others gives reason to know.El error unilateral (§ 153) añade un cuarto requisito: resultado unconscionable, o que la otra parte conociera, debiera conocer o causara el error. Una oferta muy por debajo de las demás da razón para saber.
R.2d §§ 153, 157
A contract made by a minor is at the minor's option, but the minor remains liable for the reasonable value of .
Capacity: minors may disaffirm; necessaries are the exception.Capacidad: los menores pueden repudiar; lo necesario es la excepción.
In one sentence each, name the four situations in which R.2d § 161 treats nondisclosure as an assertion.
AnswerRespuesta: Where disclosure is needed to correct a prior assertion; where the party knows the other is mistaken about a basic assumption and nondisclosure violates good faith; where the party knows the other is mistaken about the contents or effect of a writing; and where the parties stand in a relation of trust and confidence.
- correct a prior assertion
- known mistake about a basic assumption + good faith
- mistake about the writing
- relation of trust and confidence