vitiating factors

Question 1

what are the vitiating factors?

Answer 1

misrepresentation

economic duress

Question 2

what is a vitiating factors?

Answer 2

something that makes a contract void or voidable

Question 3

what is void and voidable?

Answer 3

void-never had legal effect

voidable-can be made void in certain circumstances

Question 4

what is misrepresentation?

Answer 4

false statement of material fact made by a party to the contract that induced the other party to enter the contract-(Fletcher v Krell)

Question 5

what are the rules for misrepresentation?

Answer 5

silence not usually misrep unless there are changed facts-(With v O’Flanagan)

statement doesn’t have to be written or verbal-(Spice Girls v Aprillia World)

must be of a material fact-(Bisset v Wilkinson)

must induce other party to enter the contract-(Redgrave v Hurd)

Question 6

what are the types of misrep?

Answer 6

innocent

negligent

fraudulent

Question 7

what is innocent misrep?

Answer 7

genuinely held on reasonable grounds

false statement made honestly-Misrep Act 1967

remedy is either rescission OR damages-(Leaf v International Galleries)

Question 8

what is negligent misrep?

Answer 8

false statement made by person who believed statement was true but had no reasonable grounds for believing it to be true-s.2(1) misrep act

remedy is rescission and damages-(Esso Petroleum)

Question 9

what is fraudulent misrep?

Answer 9

tort of deceit

statement made without belief in the truth-(Derry v Peek

remedy is rescission and damages-(Cherrilow v Butler Creagh)

Question 10

what is rescission?

Answer 10

parties return to places before contract made

Question 11

when is rescission not allowed?

Answer 11

when parties can’t be restored to their places-(Clarke v Dickson)

affirmation-party decided to carry on contract despite the misrep-(Long v Loyd)

delay-delay in bringing in claim for the misrep-(Leaf v International Galleries)

third party has gained rights over the property-(Lewis v Averay)

Question 12

what is economic duress?

Answer 12

any contract made where one party is forced into it should not be valid

undue influence
duress
economic duress

Question 13

what is undue influence?

Answer 13

relationship between parties which has been exploited by one party to gain an unfair advantage

duress-when someone enters into contract as result of threats of violence which would amount to crimes or torts if those threats were carried out

economic duress-when someone enters into a contract as a result of financial threats

Question 14

what are the requirements to prove economic duress?

Answer 14

practical effect of which is that there is compulsion on or lack of practical choice for the victim

which is illegitimate and

which is a significant cause inducing the claimant to enter into the contract

(Universe Tankships of Monrovia v International Transport Workers Federation)

Question 15

what is illegitimate pressure?

Answer 15

commercial pressure is not enough to amount to economic duress-(Pao on v Lau yiu Long)

illegitimate is not synonymous with unlawful-(CTN Cash and Carry v Gallagher)

pressure could be illegitimate even when lawful-(Progress Bulk Carriers v Tube City)

Question 16

what doesn’t economic duress cover?

Answer 16

usually doesn’t cover threat towards property-(Atlas Express v Kafco)