Statement A: A simple mistake can invalidate a contract. Statement B: Incidental fraud only obliges the erring party to pay damages to the injured party. Only Statement 'B' is fals... Statement A: A simple mistake can invalidate a contract. Statement B: Incidental fraud only obliges the erring party to pay damages to the injured party. Only Statement 'B' is false. Only Statement 'A' is false. Both statements are false. Neither is false.
Understand the Problem
The question is asking us to evaluate the truth of two legal statements regarding contracts and fraud, and then determine the accuracy of each statement.
Answer
Both statements are false.
Both statements are false. A simple mistake does not always invalidate a contract unless it is a fundamental mistake that affects the essence of the contract. Incidental fraud typically does not just result in damages; it may allow for rescission of the contract or other remedies.
Answer for screen readers
Both statements are false. A simple mistake does not always invalidate a contract unless it is a fundamental mistake that affects the essence of the contract. Incidental fraud typically does not just result in damages; it may allow for rescission of the contract or other remedies.
More Information
In contract law, both unilateral and mutual mistakes have specific conditions under which they affect the validity of a contract. A simple unilateral mistake by itself doesn't automatically invalidate a contract. Additionally, fraud typically allows for the possibility of rescission, not merely damages, particularly when the fraud affects the essence of the contract.
Tips
A common mistake is to assume all types of mistakes or fraud automatically void contracts or only incur damages, respectively. Always consider the nature of the mistake or fraud and how contract law defines these situations.
Sources
- Solved] For a unilateral mistake to make a contract voidable - studocu.com
- Mutual and Unilateral Mistake in Contract Law - Ian Ayres - ianayres.yale.edu
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