Vitiating Factors

Question 1

Presumed third party undue influence

Answer 1

VOIDABLE - A presumption of undue influence arises because of the relationship of trust and confidence (e.g. between employer and employee). It should be clear to a third party (eg bank). Third party is said to be ‘put on enquiry’ by the relationship of trust and confidence and to have constructive notice of the undue influence. The contract will be voidable unless the third party took steps to ensure that the employee made the decision of her own free will.

Question 2

Misrepresentation
(1) What kind of representation?
(2) Can silence amount to misrep?

Answer 2

False statement of fact or law about present or past state of affairs which induces other party to enter into the contract.

BUT silence does not generally give rise to misrep - There is no general duty to disclose facts. EXCEPT in contract of utmost good faith