Mistake In Australian Consumer Law

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1. MISTAKE

Mistake is where the one or both parties shared a mistaken assumption or confusion as to terms or object within a contract. if the parties entered into a contract under the same wrong assumption, that contract maybe void for common mistake if the mistake is so fundamental that it nullifies agreement. The law distinguishes three kinds of mistakes: common, mutual and unilateral. If both parties made the mistake it constitutes common mistake contrary to unilateral mistake where only one party made the error. Likewise, if parties both make mistake at cross purposes, it identifies mutual mistake.

2. MISREPRESENTATION

Misrepresentation is another factor which adds impact on validity of contract. When one party give deceitful information which influences …show more content…

UNFAIR CONTRACT TERMS

Andrews (2011) states that unfair contract terms excludes a person to any bias concerning his right or remedy under contract. In case the court discovers an unfair term, it will convey no legal effect and will not be binding.

The last three avoidances are said to be stronger where it is codified in Australian Consumer Law (ACL). This statute of law is under the Competition and Consumer Act of 2010 which then formerly known as Trade Practices Act 1974. This legislation was made primarily for consumer protection against unfair trading.
V. REMEDIES

The common law will hold an agreement to be binding as long as the essential elements of a contract are available (i.e. offer and acceptance, consideration, intention to create legal relations and certainty) and no vitiating factors present. When a party breach, avoid or do not perform the promise in stipulated to the terms of the contract, the non-breaching party is entitled to have remedies. Court will often award damages to the other party depending on the circumstances of the case. As soon as the court recognised legal rights, the court will then give either legal or equitable remedy (Willmott et al. 2012).
1. COMMON LAW

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