Contract Law: Vitigating factors Flashcards

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1
Q

what are vitigating factors?

A

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.

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2
Q

What are the elements for misinterpretation?

A
  • 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.
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3
Q

What are the 3 types of interpretation?

A
  • 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.
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4
Q

How is the economic duress established?

A
  • 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.
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5
Q

What are remedies for innocent misinterpretation?

A

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.

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6
Q

What are the remedies for negligent misstatement?

A
  • Recission
  • Damages applied through the laws of tort
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7
Q

What are remedies for fraudulent misstatement?

A
  • Recission
  • Damages applied through the laws of tort
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8
Q

What are the remedies for economic duress?

A

Courts make an order for the restitution of property or money extracted under such duress.

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