Statement A: The remedy for a contract with substantial mistake is annulment of contract. Statement B: A contract which has been the subject of an incidental fraud can be rescinded... Statement A: The remedy for a contract with substantial mistake is annulment of contract. Statement B: A contract which has been the subject of an incidental fraud can be rescinded under Art. 1381, NCC. Only Statement 'B' is true. Both statements are true. Neither is true. Only Statement 'A' is true.
Understand the Problem
The question presents two statements regarding the legal concepts of contract remedies and asks the user to identify the truthfulness of each statement. It's analyzing the principles of contract law and their applications.
Answer
Only Statement 'A' is true.
Only Statement 'A' is true.
Answer for screen readers
Only Statement 'A' is true.
More Information
In contract law, a substantial mistake can lead to annulment because it signifies a material misunderstanding impacting the parties' agreement, voiding their consent. However, rescission for incidental fraud under Article 1381, NCC, isn't clearly addressed in the typical legal context, indicating a potential misunderstanding.
Tips
A common mistake is assuming all types of fraud or mistake automatically lead to a particular remedy. Legal specifics can vary, requiring precise understanding of each scenario under applicable laws.
Sources
- Annulment of contract: mistake and fraud - Stibbe - stibbe.com
- Fraudulent Misrepresentation - FindLaw - findlaw.com
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