Vices of Consent Flashcards
Consent may be vitiated by…
error, fraud, duress
Error vitiates consent only when…
it concerns a cause without which the obligation would not have been incurred and the cause was known or should have been known by the other party
When does error concern cause?
When it bears on the nature of the contract, or the contractual object, or persons, or law, or any thing that the parties should have regarded in good faith as cause for the obligation
Can the party avail himself of his error if the other party is willing to performer the contract as intended by the party in error?
No
Who is liable for losses when a contract is rescinded ?
If it was the party who committed the error, then he liable for losses to the other party
Error is a false representation of reality, it can be about :
Who is in error? Unilateral/bilateral
What is the error about? Of fact/of law
Does the error vitiate consent? Substantial/insubstantial
Is the party entitled to relief? Excusable/inexcusable
What is bilateral error?
When both parties labor under the same substantial error
Unilateral error?
One party labors under error, while other party was aware of the truth
What are remedies for error?
Rescission of contract, or reformation of contract
What is the difference between error of law and error of fact?
Error of fact can concern person, object, type of contract, or conditions of the contract
While Error of Law involves an erroneous application of the law to facts, or settlements. (not to be confused with ignorance of the law)
What makes an error substantial?
Must concern the principal cause of the conventional obligation in the contract.
If not, then it is NOT substantial
When is an error actionable?
When it is substantial and excusable.
What happens when the error is substantial and excusable?
It gives rise to relative nullity.
What is fraud?
Misrepresentation or suppression of the truth with the intention to gain an unjust advantage
What if it was easy to find the actual truth?
Then that fraud won’t vitiate consent
What if a confidence relationship (family etc) is the one did the fraud?
Then that is an exception to the “reasonably ascertainable truth”
Does error induced by fraud need to concern cause of the obligation to vitiate consent?
No, but it must concern a circumstance that has substantially influenced that consent
What if fraud is committed by a 3rd party?
The it vitiates the consent of the contracting party if the other party should have known of the fraud.
When is consent vitiated by duress?
When the consent vitiated by duress is of such nature as to cause reasonable fear and unjust and considerable injury to a party’s person, property of reputation.
Age, health, personal circumstances will be taken into consideration in determining the reasonableness of the fear.
What if the duress is directed against third parties?
If the third parties is the spouse, or direct family of the party, then consent is vitiated.
Otherwise it is left to the discretion of the court.
What if the duress is exerted by a third party?
Then it vitiates consent
What if threat is just an exercise of a lawful right?
Then consent is not vitiated
What is lesion?
Transfer of an immovable for less than it is worth at the time of transfer
What rights does the seller of lesion have?
Rescind the contract. Peremptive period of 1 year.
What’s the difference between prescription and peremption?
Prescription merely prevents the enforcement of right by action; preemption destroys the right itself.
