Case Title: Cancellation of Contract and Undue Influence
Party A: John Doe (Student)
Party B: XYZ Corporation (Large Manufacturing Company)
John Doe, a student, entered into a contract with XYZ Corporation for the purchase of a piece of machinery. However, issues arose during the contract, leading John Doe to claim lack of agreement and undue influence.
Lack of Agreement:
John Doe argues that he didn’t fully understand the contract when he signed it. He believes he didn’t give his genuine consent and wants to cancel the contract. John Doe also believes that he should get back the money or consideration he gave to XYZ Corporation.
Mistake by One Party:
John Doe admits that the mistake was made by him alone and not by XYZ Corporation. However, he believes that the contract should still be valid despite his mistake. XYZ Corporation disagrees and thinks the contract should be canceled due to the mistake.
John Doe claims that XYZ Corporation exercised undue influence over him during the contract negotiation and signing. He says they rushed him into agreeing to the terms, prevented him from seeking advice, and that the contract unfairly benefits XYZ Corporation.
After considering the facts and the law, the court makes the following rulings:
Cancellation of Contract due to Lack of Agreement:
The court agrees with John Doe that he didn’t fully understand the contract. Therefore, the court cancels the contract, and John Doe, as the student who wants to cancel the contract, should get back the money or consideration he gave to XYZ Corporation.
Mistake by One Party:
The court decides that John Doe’s mistake alone doesn’t make the contract invalid. The contract remains in effect, and both parties must fulfill their obligations under the contract.
The court finds evidence supporting John Doe’s claim of undue influence by XYZ Corporation. They rushed John Doe into agreeing, prevented him from seeking advice, and the contract unfairly benefits XYZ Corporation. As a result, the court allows John Doe to cancel the contract due to undue influence, and both parties must return any money or consideration they received from the other.
After reading and studying this case above, please answer the following questions:
1- Who made the mistake in the contract?
2- What is the legal principle regarding the binding nature of contracts in cases of unilateral mistake?
3- Can you explain the concept of undue influence in contract law?
4- How did XYZ Corporation allegedly rush John Doe into consenting to the contract terms?
5- What is the legal consequence of the court ruling the contract voidable based on undue influence?
6- What does the court order both parties to do regarding the cancellation of the contract?
7- In light of Chapter 17, provide examples of questions affecting determination of undue influence
Complete answering the 7 questions and submit this assignment before the due date.
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