Oni bought a variety store franchise because he thought that its position on a bus route near some high-rise apartments would make it very lucrative. He had misread the transit map, however, for the bus ran along the street parallel to the one the store was on, and the occupants of the high-rises stopped off at a store on that street. Since Oni has made a mistake of fact, the court will grant him rescission of the franchise contract.

Question

Quizplus · Accepted Answer

Rescission of a contract typically requires a mutual mistake of material fact by both parties or a misrepresentation by one party to the other. Oni's unilateral mistake in misreading the transit map does not automatically entitle him to rescission unless he can prove that the franchisor somehow misrepresented or was aware of and failed to correct his misunderstanding.

Oni Bought a Variety Store Franchise Because He Thought That