Can I Object to the Valuation of an Asset in My Property Settlement?
Full Question:
Answer:
The answer will depend in part on whether the agreement was contingent on other conditions, such as approval of the financial settlement, or it was a completed contract. The required elements that must be established to demonstrate the formation of a legally binding contract are:
(1) offer;
(2) acceptance;
(3) consideration;
(4) mutuality of obligation;
(5) competency and capacity; and, in certain circumstances,
(6) a written instrument.
The rejection of an offer terminates the offeree's power of acceptance and ends the offeror's liability for the offer. Rejection might come in the form of an express refusal to accept the offer or by implication when the offeree makes a counteroffer that is materially different from the offeror's original proposal. Most jurisdictions also recognize an offeror's right to withdraw or revoke an offer as a legitimate means of terminating the offer.
Acceptance of an offer is the expression of assent to its terms. Acceptance must generally be made in the manner specified by the offer. If no manner of acceptance is specified by the offer, then acceptance may be made in a manner that is reasonable under the circumstances. An acceptance is only valid, however, if the offeree knows of the offer, the offeree manifests an intention to accept, and the acceptance is expressed as an unequivocal and unconditional agreement to the terms of the offer.
Many offers specify the method of acceptance, whether it be oral or written, by phone or in person, by handshake or by ceremony. Other offers leave open the method of acceptance, allowing the offeree to accept in a reasonable manner. Most consumer transactions fall into this category, as when a shopper "accepts" a merchant's offer by taking possession of a particular good and paying for it at the cash register. But what constitutes a "reasonable" acceptance will vary according to the contract.
Each party to a contract must provide something of value that induces the other to enter the agreement. The law calls this exchange of values "consideration." The value exchanged need not consist of currency. Instead, it may consist of a promise to perform an act that one is not legally required to do or a promise to refrain from an act that one is legally entitled to do. For example, if a rich uncle promises to give his nephew a new sports car if he refrains from smoking cigarettes and drinking alcohol for five years, the law deems both the uncle's promise and the nephew's forbearance lawful consideration.
A court's analysis as to whether a contract is supported by sufficient consideration typically focuses more on the promise or performance of the offeree than the promise or performance of the offeror. Courts often say that no consideration will be found unless the offeree suffers a "legal detriment" in making the return promise or in performing the act requested by the offeror. As a general rule, legal detriment is found if the offeree relinquishes a legal right in fulfilling his or her contractual duties. Thus, promises to give love and affection or make a gift or donation are not sufficient consideration to support a contract because no one is under a legal duty to give or refrain from giving these things to others. Similarly a promise to perform an act that has already been completed in the past fails to offer consideration to support a new agreement.
If a completed contract has been formed, whether you have a right to rescind the contract will be a matter of subjective determination for the court, based on all the facts and circumstances involved. Some of the factors that may be considered by the court, among others, include whether there was a significant misrepresentation made, whether acceptance was conditioned on the provision of supporting documents, whether the contract terms provide for means of cancellation, and the amount of variance between the valuation provided and the actual valuation. If a party to a contract knowingly makes a misrepresentation in order to induce the other party to act in reliance on that misrepresentation, and the misrepresentation is significant to the value of the contract, a court may void the contract.
Rescission is the name for the remedy that terminates the contractual duties of both parties, while reformation is the name for the remedy that allows courts to change the substance of a contract to correct inequities that were suffered. In order to have a rescission, both parties to the contract must be placed in the position they occupied before the contract was made. Courts have held that a party may rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds.
Where only one of the parties is mistaken about facts relating to the contract, the mistake will not prevent formation of a contract unless the nonmistaken party is or should have been aware of the mistake made by the other party, or if the mistake was due to mathematical mistake in addition, summation, subtraction, division, or multiplication and was made inadvertently and without gross negligence.
When both parties make a mistake of fact about something going to the heart of the bargain, the contract is void. Generally, a mistake of value is not a defense, and the contract is valid, unless the mistaken value is due to a mistake of material fact.
