Vitating Elements In Formation

Question 0

What is a potential remedy for misrepresentation?

Answer 0

Rescission of the contract and damages

Question 1

What is an actionable misrepresentation?

Answer 1

A false statement of fact or law which induced a party to enter into the contract

Question 2

What can misrepresentations be?

Answer 2

Innocent
Negligent
Fraudulent

Question 3

Silent to a change of circumstances regarding a statement made can be what?

Answer 3

Misrepresentation by silence

Question 4

What are the categories if misrepresentation?

Answer 4

Fraudulent
Negligent at common law
Statutory misrepresentation
Innocent

Question 5

Fraudulent misrepresentation

Answer 5

The maker if the statement knows it is untrue or doesn’t care

Question 6

Negligent at common law

Answer 6

The two parties are in a special relationship. There is a duty to care. There is a breach if duty

Question 7

Statutory misrepresentation

Answer 7

The maker of the statement has no reasonable grounds to believe it’s true

Question 8

Innocent misrepresentation

Answer 8

The maker of the statement believes it to be true

Question 9

What is rescission?

Answer 9

Where the contract is set aside. As if if never existed. Goods are returned

Question 10

Limitations of rescission

Answer 10

Aware of the misrepresentation
Significant time lapse
Restitution is impossible
Affect the rights of a third party

Question 11

What can the courts award in place of rescission?

Answer 11

Damages. Where it is equitable to do so

Question 12

To obtain damages for a fraudulent misrepresentation what must the claimant prove?

Answer 12

The statement was made knowing it was untrue or
Without any genuine belief of truth or
Reckless disregard of truth

Question 13

What was the expansion of duress?

Answer 13

From the personal security of a person to goods to economic duress

Question 14

Does duress make a contract void or voidable?

Answer 14

Voidable. Consent is revocable

Question 15

What does duress render a contract?

Answer 15

Voidable not void

Question 16

What are the consequences of duress rendering a contract void?

Answer 16

The party must act promptly

A third party can acquire title to goods even though his vendor did so with a contract brought about by duress

Question 17

What are the types of duress?

Answer 17

Duress to the person
Duress to goods
Economic duress

Question 18

example of duress to goods

Answer 18

Threats to destroy goods or take away

Question 19

How does economic duress take place?

Answer 19

When one party uses it’s superior economic power to the weaker party into an agreement

Question 20

When does the doctrine of undue influence operate?

Answer 20

When the relationship means one relies upon the other

Question 21

What is the criteria for proving actual undue influence?

Answer 21

They had the capacity to influence
They did influence
Exercise of this influence was undue
Because of this influence the transaction was brought about

Question 22

An example of genuine presumptions in undue influence

Answer 22

Doctor patient

Question 23

What are Evidential presumptions?

Answer 23

Where the complainant must prove there was undue influence as a result if a relationship

Question 24

How can the burden if proof shift to the wrongdoer in evidential presumptions in undue influence?

Answer 24

They must prove that the complainant acted independently and understood their own actions

Question 25

Example of undue influence involving third parties?

Answer 25

Spouses. Husband leading wife into contract with a bank

Question 26

What are the two types if undue influence?

Answer 26

Actual

Presumed