Ep. 8: Mistake and Excuse in Contract Law: Navigating Unforeseen Circumstances

Focusing on the legal doctrines of mistake and excuse in contract law. The text explains how these doctrines allow parties to avoid liability for contractual obligations when unforeseen circumstances arise. It examines various situations where mistakes about material facts or subsequent events render performance impossible, impracticable, or pointless. The analysis includes key cases like Sherwood v. Walker, Anderson Bros. Corp. v. O’Meara, and Krell v. Henry, exploring the allocation of risk, the duty to investigate, and the interplay between foreseeability and the concept of a “basic assumption” upon which a contract is made. The text also examines the doctrine of frustration of purpose, which applies when a party’s primary reason for entering a contract is substantially frustrated due to an unforeseen event. Ultimately, the source material provides a comprehensive overview of these legal doctrines and their application in various contract scenarios, drawing on economic analysis and