Legal Question in Civil Litigation in Illinois

Re: contracts

If there was a clerical error, the insurance company is probably not bound by the first contract (but could be).

If you do not sign the second contract then it is not binding either.

So right now, nothing is binding. Which amount did you agree to with the insurance company before the contract came?

Re: contracts

I am not sure I agree with my colleague regarding the fact that the first release is not binding. A mistake of fact is not a defense to contract formation. I would argue that the original amount is the one you negotiated and then accepted binding yourself and the insurance company.

But it all depends on the amount of the money involved. If it is a few thousand dollars, filing a breach of contract action against the insurance company will cost you more... But if there is a lot of money involved, it may be worth not to roll over and play dead just because the insurance company claims they have made a mistake.

I hope this helps-

Nima Taradji