Reformation - sustany/dvg GitHub Wiki

Reformation is a court�s equitable power to modify a contract to reflect the parties� true intent where some error has been committed. Courts require plaintiffs seeking to reform a contract to prove certain elements, however. The Oregon Supreme Court in Jensen v. Miller summarizes the common law requirements for showing reformation, stating that parties seeking reformation must show: �(1) that there was an antecedent agreement to which the contract can be reformed; (2) that there was a mutual mistake or a unilateral mistake on the part� of the party seeking reformation and inequitable conduct on the part of the other party; and (3) that the party seeking reformation was not guilty of gross negligence.� For example, in Central Oregon Independent Health Services, Inc. v. State, an Oregon Court of Appeals held that a plaintiff stated a claim for reformation by stating that previous contracts required parties to �pay at the correctly calculated rates,� as opposed to the current contract which had been construed �to impose no obligation on [the parties] to correct erroneously calculated rates.�