Business Law

When there is a unilateral mistake, in what three types of situations may a contract not be enforced? Explain your answer.

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    · Unilateral Mistake - when an honest mistake is made and it is fundamental. If the recipient of the offer knows that there has been a mistake. The court could be persuaded to fix such mistakes. For example, if Mrs. A is buying a new car for $20,000 plus $500 shipping, but she notices that the contract is for $500, and signs eagerly knowing there was a mistake. Later the autodealer realizes a mistake was made and asks the court to correct the unilateral mistake. Some examples of successful and unsuccessful cases are, [Imperial Glass Ltd. v. Consolidated Supplies Ltd.] [ Belle River Community Arena Inc. v. W.J.C. Kaufmann Co. et. al.] [Imperial Glass Ltd. v. Consolidates Supplies Ltd.] [Ron Engineering et. al. v. The Queen in right of Ontario et. al.] [Calgary v. Northern Construction Company Division of Morrison-Knudsen Company Inc. et. al.] The general principles are,
    1. - the source of the error was clerical
    2. - the errors were not obvious
    3. - the error was reported promptly
    4. - the error was honest and unintentional with good motives
    5. - the "contract" was an irrevocable offer not yet accepted
    6. - the intent was only to correct the offer, not withdraw it.

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