Final Paper Essay Example | Topics and Well Written Essays - 1250 words - 1

Final Paper - Essay Example (Restatement of the Law Second, of Contracts Section 153) Generally a unilateral mistake will not give rise to grounds for rescission of a contract. However, there are three specific circumstances in which the contract will not be enforced/rescinded on the ground of unilateral mistake. To start with the good faith requirement in the law of contract requires that parties to a contract do not take unfair advantage of the other party. To this end the courts will not enforce a contract in which there is a unilateral mistake if enforcement would be unconscionable. In circumstances where one party is aware of the mistake made by the other party and also aware that the mistaken party would not enter into the contract had he been aware of the mistake the enforcement of such a contract would be unfair and unconscionable. (Angelo, 11) At the heart of the matter is the general requirement that all contracts are required to be made and executed under principles of fair dealing. In keeping with this element of fair dealing a second ground permitting the rescission of a contract on the grounds of unilateral mistake is when there is evidence that the mistake is clerical or mathematical in nature. (M.F. Kemper Constr. Co. V. City of Los Angeles 37 Cal. 2d 696) What is required is the absence of purposive intent. (M.F. Kemper Constr. Co. V. City of Los Angeles 37 Cal. 2d 696) It is generally assumed that the parties to a contract enter into it for some benefit and should the clerical or mathematical mistake be such that it undermines a benefit to one party it can be rescinded. (M.F. Kemper Constr. Co. V. City of Los Angeles 37 Cal. 2d 696) However, an error in judgment will not justify rescission of a contract. (M.F. Kemper Constr. Co. V. City of Los Angeles 37 Cal. 2d 696) A third ground upon which the courts will rescind a contract on the grounds of