Vistiating factors of a contract Flashcards
What is a contract?
A legally binding agreement between two or more parties.
What are the two ways a contract can be formed?
Verbally or in writing.
What is a vitiating element in a contract?
An element that makes a contract unenforceable.
List the vitiating elements of a contract under Nigerian law.
- Mistake of facts
- Duress
- Illegality
- Undue influence
- Misrepresentation
- Incapacity
What is a common mistake in contract law?
Both parties are mistaken about the same fact that underlies the agreement.
What is a mutual mistake?
Both parties are mistaken about each other’s terms.
What defines a unilateral mistake?
Only one party is mistaken.
What is duress in contract law?
Intentional and wrongful pressure exerted to force someone into a contract.
What must a party do if they enter into a contract under duress?
Repudiate the contract within a reasonable time after the duress has ceased.
What is undue influence?
Improper use of power to pressure a party into a contract.
What is the difference between persuasion and undue influence?
Undue influence involves excessive pressure affecting a person’s freedom of choice.
What makes a contract illegal?
If it involves doing something illegal or contrary to public policy.
What are the types of misrepresentation?
- Fraudulent misrepresentation
- Negligent misrepresentation
- Innocent misrepresentation
What is fraudulent misrepresentation?
A false statement made knowingly or recklessly.
What is negligent misrepresentation?
A statement made without reasonable grounds to believe it is true.
What is innocent misrepresentation?
A false statement made without belief in its truth.
What is incapacity in contract law?
When a person lacks the legal ability to enter into a contract.
What is an unenforceable contract?
An agreement that will not be enforced by courts.
What are the requirements for an enforceable contract?
- Offer
- Acceptance
- Consideration
- No defenses against enforcement
What is consideration in contract law?
An exchange of promises to do or not do something.
What are some common defenses to enforcing a contract?
- Lack of capacity
- Duress
- Undue influence
- Misrepresentation
- Nondisclosure
- Unconscionability
- Public policy
- Mistake
- Impossibility
True or False: A contract can only be valid if it is in writing.
False
Fill in the blank: A contract is __________ if it has a vitiating element.
unenforceable
