When you went home for Thanksgiving dinner, your great aunt, now 80 years old, seemed very unhappy. You learned that she had just signed a contract to buy an expensive condominium in a retirement community. She had attended a real estate "seminar" with her friend. In trying to think of a way for her to get out from under this contract, you review mistake, duress, undue influence, and unconscionability. Which of the following is False?
A) To avoid the contract on the basis of non est factum, she would have to prove, among other things, that she did not understand the nature of the document signed.
B) To avoid the contract on the basis of undue influence, she would have to show that she was improperly pressured by a trusted person in a dominant position.
C) To avoid the contract on the basis of duress, she would have to show that she was forced into signing the contract against her will by serious threats.
D) To avoid the contract on the basis of unconscionability, she would have to have evidence that the sellers of the property knowingly took advantage of their superior bargaining position and that the consideration was grossly unfair.
E) To avoid the contract on the basis of mistake, there is a presumption of mistake and she will automatically get out of the contract.

Question

Quizplus · Accepted Answer

The statement in option E is false. There is no presumption of mistake in contract law. The party seeking to avoid the contract on the basis of mistake must demonstrate that the mistake was mutual, and that it went to a fundamental aspect of the contract. Furthermore, the mistake must not have been the result of the party's own negligence.

When You Went Home for Thanksgiving Dinner, Your Great Aunt