defenses Flashcards
What are contract enforceability defenses
illegality, public policy, capacity, duress, undue influence, mistake of fact, misrepresentation, unconscionability
Illegality
A contract cannot be enforced if the contract is illegal or violates public policy. For a contract to be unenforced on the basis of illegality, the harm cannot be disproportionate to the bargained-for labor
Public Policy
A contract should not be enforced because its terms or purpose violate fundamental principles of fairness, morality, or public welfare, even if it otherwise meets the requirements of a valid contract
Lack of capacity
A party lacked the legal ability to enter into a binding agreement, such as minors or those with mental incapacities, rendering the contract voidable or void
Duress
Occurs when a party is coerced into a contract against their will by an improper threat, rendering the contract voidable.
A contract is voidable on the ground of duress when it is established that the party making the claim was forced to agree to it by means of a wrongful threat precluding the exercise of his free-will
Undue Influence
Makes a contract voidable if one party unfairly pressured or manipulated another into entering into a contract, thereby undermining their free will
Mistake of Fact
where both parties enter a contract with a shared incorrect belief about a material fact, can render the contract voidable
Misrepresentation
Incorrect or fraudulent assertions of fact during contract negotiations that cause reliance on the part of the other party. The false statement must be relied on or material
Unconscionability
If a contract is unfair or oppressive to one party in a way that suggests abuses during its formation, a court may find it unconscionable and refuse to enforce it