Legal Definitions - reformation

Reformation is a legal term that refers to a court's power to change a contract to reflect what the parties originally intended. This happens when there is an error in the contract that needs to be corrected. In order for a court to grant reformation, certain requirements must be met.

For example, in the case of Central Oregon Independent Health Services, Inc. v. State, the plaintiff argued that a previous contract required the parties to "pay at the correctly calculated rates." However, the current contract did not include this requirement. The court granted reformation because the plaintiff was able to prove that there was an antecedent agreement, a mistake had been made, and the plaintiff was not guilty of gross negligence.

In order to prove reformation, the following elements must be shown:

1. There was an antecedent agreement to which the contract can be reformed.
2. 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.
3. The party seeking reformation was not guilty of gross negligence.

Overall, reformation is a way for courts to correct mistakes in contracts and ensure that the parties' intentions are accurately reflected.