Factors excluding or tainting genuine agreement (consensus)

Question 1

Define a MISTAKE in terms of contract law?

Answer 1

Where one or both of the parties is mistaken about the true facts in which the contract is based

Question 2

During mistake, there appears to be ____________ , but in reality there is no ___________.

Answer 2

consensus

Question 3

What is the effect of mistake?

Answer 3

The contract may be void

Question 4

Define a MISREPRESENTATION in terms of contract law?

Answer 4

Where one party makes a false statement of
fact to the other before or at the time the
contract is concluded.

Question 5

During misrepresentation, There is consensus, but it was __________ obtained.

Answer 5

improperly

Question 6

What is the effect of misrepresentation?

Answer 6

contract may be voidable.

Question 7

What is the relationship between misrepresentation and mistake?

Answer 7

Misrepresentation leads to mistake.

Question 8

What is the consequence of this relationship?

Answer 8

It becomes tricky

Question 9

What is the meaning of void?

Answer 9

No contract

Question 10

What is the meaning of voidable?

Answer 10

Valid but flawed

Question 11

What circumstances lead to void contracts? (2)

Answer 11

1. Mistake
2. Illegality
   Resulting in a Lacking contractual capacity

Question 12

What circumstances lead to voidable contracts? (3)

Answer 12

1. Misrepresentation
2. Duress
3. Undue influence
   Resulting in a Lacking contractual capacity

Question 13

What is the legal effect/consequence of a void contract? [2]

Answer 13

It becomes UNENFORCEABLE and results in unjustified enrichment

Question 14

What is the legal effect/consequence of a voidable contract? [2]

Answer 14

You can either elect to:
1. Ratify - give formal consent
2. Rescind - cancel, revoke

Question 15

What does ‘Restitutio in Integrum’ mean?

Answer 15

“restitution to the original position”.
The term is commonly used to refer to the remedy of rescission of a contract where the aim is to return the parties to the position they would have been in if the contract had never existed.

Question 16

When does Restitutio in Integrum come into play?

Answer 16

When a voidable contract is rescinded

Question 17

What are the two types of mistake? [2]

Answer 17

1. common mistake
2. unilateral mistake

Question 18

What renders a contract void if it is a common mistake?

Answer 18

Material

Question 19

What renders a contract void if it is a unilateral mistake? [2]

Answer 19

Material + ‘iustus error’

Question 20

What is an ‘iustus error’

Answer 20

when the contract assertor’s reliance on the appearance of consensus is unreasonable or where there was no real reliance at all.

Question 21

When is a mistake material? [2]

Answer 21

1. General principle
2. Specific precedent

Question 22

What specific precedent makes a mistake material? [6]

Answer 22

1. Error in negotio (type of contract)
2. Error in corpore (subject-matter)
3. Error in persona (other party)
4. Error in motive
5. Error in substantia (quality/characteristics)
6. Error as to terms of the contract (NB!)

Question 23

When is a mistake a ‘iustus’ error? [3]

Answer 23

1. If party seeking to uphold contract knew
   other party mistaken
2. If party seeking to uphold contract should
   have known other party mistaken
3. If party seeking to uphold contract
   induced the mistake by misrepresentation

Question 24

i.e. An ‘iustus’ error is a party seeking to uphold contract ______ or should have ______ that no genuine __________ but dissensus.

Answer 24

knew
known
consensus

Question 25

What is a difference is there between common or unilateral mistake?

Answer 25

Common - BOTH parties
Unilateral- Only ONE party

Question 26

What are possible material mistakes? [2]

Answer 26

1. Error in corpore or
2. error in motive/substantia

Question 27

What is an example of a Iustus error?

Answer 27

a. Did seller know Karin mistaken? ‘At last, a Manx kitten.
b. Should seller have realised Karin
mistaken? ‘I’ve been looking for a Manx kitten for ages. Thought I’d never find one. My lucky day’
c. Did seller induce (cause) mistake by
misrepresentation? ‘Sign that reads: Manx kittens for sale!”

Question 28

What is a “Caveat subscriptor”?

Answer 28

= “let the signatory beware”!

Question 29

What type of mistake can be seen on a signed document?

Answer 29

But even mistake re terms on signed document
CAN be a iustus error!

Question 30

What type of mistake can be seen on a signed document?

Answer 30

But even mistake re terms on signed document
CAN be a iustus error!

Question 31

WHEN WILL IT BE A IUSTUS ERROR???

Answer 31

If specific duty to point out term on the facts of
that case!