On an MBE question where mistake is the issue, we are either dealing with a unilateral mistake or a mutual mistake. Unilateral Mistake A unilateral mistake occurs when only one party is mistaken about a term (or terms) of the contract. Unilateral mistake is generally not a defense, and the mistaken party will be obligated …

The parol evidence rule might seem a little bit intimidating to some students, but with some practice it’s actually relatively straightforward. What is the Parol Evidence Rule? The parol evidence rule is about whether the parties to a written contract can bring in outside evidence of matters discussed prior to or during the time the …

A valid contract generally consists of an offer, an acceptance, and the presence of consideration. What Is Consideration? Consideration is a bargained-for exchange between the two parties to a contract. Each party is giving up something. Each party is either agreeing to do something they do not have to do, or agreeing to not do …

How Do Adequate Assurances Work? A party to a contract who has reasonable grounds to be concerned that the other party might not perform can request adequate assurances of damages from the other party. If this occurs the party being asked to provide an adequate assurance must do so within a reasonable amount of time …

Overview When a contract is breached, the non-breaching party still has a duty to make reasonable efforts to mitigate (a fancy word for lessen or control) damages caused by the breach (if applicable). The non-breaching party will NOT be able to recover for damages that could have reasonably been avoided, even if the damages were …