Contract Law: Vitigating factors Flashcards
what are vitigating factors?
Something that makes a contract void or voidable
- Misinterpretation- a false statement which induces the other party to enter the contract
- Economic duress- when someone enters a contract as a result of financial threats.
What are the elements for misinterpretation?
- There must be false statement as shown in Spice Girls v Aprilla World Service 2000.
- The misinterpretation must be of material fact- a statement of fact rather than opinions shown in Bisset v Wilkinson 1927
- The statement must be made by a party to the contracts as shown by Attwood v Small 1888.
- The statement induces the other party to enter the contract.
What are the 3 types of interpretation?
- Innocent- false statement made honestly.
- Negligent- false statement made by a person who had no reasonable ground for believing it to be true.
- Translucent- statement made without the belief of truth.
How is the economic duress established?
- Whether there was a lack of practice choice for the victim
- Whether there was legitimate pressure as commercial pressure does not amount to economic duress as shown in Pao on v Lau yiu Long 1979.
What are remedies for innocent misinterpretation?
Recission equitable remedies- returning the parties to the position before the contract was made, not available for when restitution to the original pre- contract position is impossible, seen in Clarke v Dickson, when the contract is affirmed where the innocent party decides to carry on the contract, Long v Lloyds 1958, Delay of complaint after contract has seen completed as shown in Leaf v International Galleries 1950, A third party has gained rights over the property.
What are the remedies for negligent misstatement?
- Recission
- Damages applied through the laws of tort
What are remedies for fraudulent misstatement?
- Recission
- Damages applied through the laws of tort
What are the remedies for economic duress?
Courts make an order for the restitution of property or money extracted under such duress.