Contracts II - Recision Flashcards
1
Q
What are the 4 reasons to rescind a contract
A
- Misrepresentation
- Duress
- Undue influence
- Mistake
2
Q
What are the 2 types of misrepresentation?
A
- Innocent –> Engineers beware!
2. Fraudulent
3
Q
Fraudulent misrepresentation can be statements made…
A
- knowingly
- without belief in its truth
- recklessly or carelessly whether it be true or false
4
Q
Remedies for innocent misrepresentation
A
- Recision of contract
2. Compensation for damages
5
Q
Remedies for fraudulent misrepresentation
A
Same as innocent misrepresentation + damages for deceit
6
Q
Define duress
A
Somebody is forced to do something as a result of violence, threat, or other presssure.
It is voidable
7
Q
What is economic duress11
A
Threats of work slowdown
8
Q
What must be substantiated for economic duress to be confirmed.
A
- Had a contract
- Was threated to terminate contract
- Had no alternative but to accept new terms / amendment
9
Q
What is undue influence?
A
One party dominates the other, where free will to bargain is not attainable
10
Q
What types of mistakes are there?
A
Common (bilateral mistake) - both parties
11
Q
Unilateral mistake
A
Made by one party
