Question

The remedy of reformation___________.

1) applies only when money damages are inadequate.
2) can be used to correct mistakes in the original contract
3) is available if fraud is involved.
4) is a commonly used remedy.

Answer 1

The remedy of reformation is a legal principle that can be used to correct mistakes in a contract, commonly used when there are errors or omissions. It can also be sought if fraud is involved. Reformation is not available in every situation and typically applies when money damages are inadequate.

Step-by-step explanation:

The remedy of reformation is a legal principle that can be used to correct mistakes in the original contract. It is commonly used when there are errors or omissions in the contract that need to be fixed. For example, if two parties enter into a contract but there is a mistake in the terms, such as the wrong price or an incorrect description of the goods, reformation can be used to correct these mistakes.

Reformation can also be used if fraud is involved in the contract. If one party was deceived or misled by the other party, reformation can be sought to correct the contract and make it reflect the true intentions of the parties involved.

However, reformation is not available as a remedy in every situation. It typically applies when money damages are inadequate to address the problem. For example, if a party is seeking to cancel a contract due to a mistake, but cancelling the contract would cause significant harm to the other party, reformation may be used instead to correct the mistake while keeping the contract in effect.