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LSDefine
Simple English definitions for legal terms
Misunderstanding
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A quick definition of Misunderstanding:
Term: Misunderstanding
Definition: A misunderstanding in contract law happens when two people think they are agreeing to the same thing, but they are actually thinking of two different things. This can be used as a reason to say that a contract was not really made.
A more thorough explanation:
Misunderstanding
Under contract law, a misunderstanding occurs when two parties to a contract have different interpretations of the same term or provision. This can be used as a defense against the formation of a contract.
Example 1: John agrees to sell his car to Jane for $5,000. However, John was thinking of a different car than the one Jane was interested in. This is a misunderstanding because both parties were thinking of different cars.
Example 2: Sarah agrees to rent an apartment from Tom for $1,000 a month. However, Sarah thought that the rent included utilities, while Tom thought it did not. This is a misunderstanding because both parties had different interpretations of what the rent included.
These examples illustrate how a misunderstanding can occur when both parties have different interpretations of the same term or provision in a contract. In both cases, the misunderstanding could be used as a defense against the formation of a contract because the parties did not have a meeting of the minds.