Unfair Persuasion. If dominant party to contract receives unfair terms, then undue influence may exist (and the dominated party may rescind) Mistake – when one or both parties are mistaken about facts of K:
Unfair Persuasion. Example: unfair terms of the contract Example: an elderly person, who is dependent on one child for daily care, may sell her home to that child for half its value. This is a strong evidence of lack of free will. To avoid unfair persuasion, the stronger party should act with scrupulous honesty, fully disclose all important facts, and insist that the weaker party obtain a lawyer before entering into a contract. Persuasion or nagging do not necessarily mean undue influence exists. WHAT IS A UNILATERAL MISTAKE? unilateral mistakeoccurs when one party holds an incorrect belief about the facts related to a contract. generally, this does not affect the validity of the contract. Example: a mistake from failure to read a contract before signing it Example: a misunderstanding from a rushed or careless reading of contract Example: signing a contract written in language you don’t understand will bind you even if you are mistaken about some of the contract’s content.
