CONTRACT - Vitiating Factors

Question 1

Result of Vitiating Factors

Answer 1

Void
Voidable
Illegal
Unenforceable

Question 2

Void Contract

Answer 2

No contract was ever made

Question 3

Voidable Contract

Answer 3

Valid until injured party rescinds

3rd party rights obtained before rescission remain

Question 4

Illegal Contract

Answer 4

Contract tainted with illegality - courts will do nothing to alter position of parties

Question 5

Unenforceable contract

Answer 5

Agreements that require contract in writing -

i.e. Consumer Credit Agreement unenforceable if not in writing

Question 6

Representations Def:

Answer 6

Statements made BEFORE the contract is entered into
Induced the parties
Relied upon

Question 7

Misrepresentation Def:

Answer 7

MISLEADING representation made by one party to induce the other to enter the contract

Or

Untrue statement of fact

Question 8

Representation Established if:

Answer 8

Not mere puff
Fact not opinion
Unambiguous 
Is material
Relied upon

Question 9

Vitiating Factors

Answer 9

Misrepresentation 
Mistake
Duress and Undue Influence
Contrary to Public Policy
Illegal Contracts

Question 10

Statement of opinion CS:

Answer 10

BISSET V WILKINSON

re land to support sheep

Courts held was merely expressing his opinion

Question 11

Silence (non-disclosure) is not misrepresentation unless:

Answer 11

An Insurance Contract
A Part-truth - a lie
Has become untrue
Required by statute i.e. Companies Act
Facts relied upon as important to contract

Question 12

Non-disclosure considered misrepresentation - relied upon CS:

Answer 12

SPICE GIRLS LTD V APRILIA WORLD SERVICES BV (2002)

Question 13

Types of misrepresentation (analysis of the state of mind of the party making the statement):

Answer 13

Fraudulent
Negligent
Innocent

Question 14

Remedy for fraudulent misrepresentation:

Answer 14

Damages and Rescission

Question 15

Remedy for negligent misrepresentation:

Answer 15

Under the Misrepresentation Act 1967

Damages and Rescission

Question 16

Remedy for innocent misrepresentation:

Answer 16

Rescission only

if not possible, then damages in lieu of rescission

Question 17

Fraudulent misrepresentation def:

Answer 17

Statement:
Knew was false
Did not believe true
Did not care (recklessness)

Question 18

Negligent misrepresentation def:

Answer 18

If reasonable person would not have made it (doesn’t matter if believed true)

Remedy established under Misrepresentation Act 1967

Question 19

Innocent misrepresentation def:

Answer 19

Not made fraudulently or negligently

Question 20

Right to rescind (re misrepresentation) lost when:

Answer 20

Restitution impossible
3rd Party has gained rights before rescission
Contract affirmed after discovery of misrepresentation
Considerable lapse of time

Question 21

Misrepresentation - statement of fact due to specialist skill CS:

Answer 21

ESSO PETROLEUM CO LTD V MARDON (1976)

Re throughput of gallons of petrol for leased petrol station

Question 22

No representation from sales trade puff - def:

Answer 22

Generalised non specific product claim

Claim that no reasonable man would ever believe