Vitating Factors Flashcards
What are two factors
Misrepresentation
Economic duress
factors can be either what
wrongful action, statement or duress by D during contractual negotiations
what is a vitiating factor
it is a pre-contractual issue, something that occurs prior to of contract formation, namely, acceptable of an offer
what can these negotiations (duress) make a contract
void or voidable
what happen if a suffering party enter a contract- with vitiating factors
if they discovers that they were subject to a vitiating factor, meaning the party has the option to make the contract void if they wish
what is void in a contract
cannot be enforced by either party. the law treats a void contract as if it had never been formed
what is a voidable in a contract
a contract is valid but that can be declared invalid at the request of the parties
if a contract is valid …
it is enforceable
if contract is not valid…
the contract may not exists all or it may exist but become ‘voidable’
what is a void contract
those that never existed for one reason or another those that never existed for one reason or another
what is a voidable contract
ones that do exist but, due to their construction- can come to an end and not be enforceable
what is misrepresentation
it is an untrue statement/false statement
material fact
who can do misrepresentation
made by a party to the contract this could be the offeror or the offeree
who can induce for misrepresentation
the other party to enter into a contract
what undue influence
Where there exists a relationship between the parties which has been exploited by one party to gain an unfair advantage
does undue influence enable
this will enable the person influenced to have the contract set aside as against a party who subjected the other to such influence
what is duress
in contract law relates to where a person enters an agreement as a result of threats. Where a party enters a contract because of duress they may have the contract set aside
what is economic duress
is where someone enters into an agreement as a result of financial threats
what are the four types of misrepresentation
fraudulent
negligent
innocent/statutory (misrepresentation act 1967)
case when misrepresentation can express
“1984 morris 10 saloon” Oscar v Williams
case where misrepresentation is implied
spice girls Ltd v Aprillia world service in this case was implied by conduct
what is meant by an untrue statement
must be one that is not true or accurate and may be in any form-written, spoken or by conduct
two case that link to untrue statement
Fletcher v Krell
Spice girls v Aprillia world service BV
what is the misrepresentation for fletcher v Krell
silence cannot be a misrepresentation. Governments are not obliged to tell potential employers that she was divorced.
