Vitiating Factors

Question 1

What are the two grounds in which a contract would be void?

Answer 1

1. Illegality
2. Mistake

Question 2

Contracts may be void for illegality if they were contrary to ______, or the institution of _______, damaging to the _______, or interferes with ________

Answer 2

morality, marriage, government, justice

Question 3

A restrictive covenant or noncompete in an employment contract is an illegal _______ ___ _______ if it is not reasonable in ______ and geographic ______. It must also seek to protect a ________ interest

Answer 3

restraint of trade, length, scope, legitimate

Question 4

Restraint of trade clauses are prima facie ____ if they’re not found to be _______

Answer 4

void, reasonable

Question 5

Which type of mistake is where both parties make the same mistake when the agreement was made?

Answer 5

Common mistake

Question 6

Which type of mistake is where the parties are mutually and reasonably mistaken about different things (i.e., the parties are at cross purposes?)

Answer 6

Mutual mistake

Question 7

Which type of mistake is where one party makes a mistake in which the other should have known or been aware of the mistake?

Answer 7

Unilateral mistake

Question 8

The courts have found that generally, a common mistake on the ______ of a subject matter (e.g. believing an item is an original when it’s a copy) will ___ _______ a contract void

Answer 8

quality, not render

Question 9

A contract can be void for mistake as to _______ if one party believes they are entering the contract with the person the other party is pretending to be, and they would not have done so if they knew who they were dealing with

Answer 9

Identity

Question 10

Which doctrine can render a contract void if a party signs a document believing it to be something it’s not?

Answer 10

non est factum

Question 11

Name four situations which would render a contract voidable?

Answer 11

1. Misrepresentation
2. Minors
3. Duress
4. Undue influence

Question 12

Duress of the person is where a contract is entered into because of __________ pressure, such as a ______ threat

Answer 12

illegitimate, physical

Question 13

Is a threat to unlawfully retain goods (known as duress of goods) typically a ground for avoiding a contract?

Answer 13

No

Question 14

What is economic duress?

Answer 14

The unlawful exercise of economic pressure to induce a party to enter into an agreement

Question 15

What are the 3 elements of economic duress?

Answer 15

1. Illegitimate pressure/threat is made
2. The pressure/threat is a significant cause inducing the injured party to enter into the contract
3. Injured party has no practical alternative to agreeing to the terms set out by the injuring party

Question 16

Undue influence is where an _______ party’s influence prevented a party from giving ____ ______

Answer 16

outside, true consent

Question 17

When may undue influence be presumed under a contract?
(2 requirements)

Answer 17

1. The contracts calls for an explanation
2. There is a relationship which gives rise to the presumption (e.g. parent/child, solicitor/client)

Question 18

In a sale of goods context, can title to goods ever pass under a void contract?

Answer 18

No

Question 19

A party who rescinds a voidable contract can _____ ___ ____ that they paid under the contract

Answer 19

claim back money