Vitiating factors Flashcards
What are vitiating factors ?
Makes contracts void or voidable, meaning it has no legal standing
What is the definition and/or the requirements of misrepresentation ?
A false statement
Of material fact
Made by a party to the contract
That induces the other party to the contract
What are the 3 types of misrepresentation ?
Innocent
Negligent
Fraudulent
What is innocent misrepresentation ?
Misrep act 1967:
False statements made honestly without negligence
What is negligent misrepresentation ?
When a person honestly makes a statement, but have no reasonable grounds for believing it to be true
What is fraudulent misrepresentation ?
When a statement is made without belief in the truth
What are the remedies for misrepresentation ?
Recission
Restitution of pre contract position
Third party has rights over property
What is recission ?
An equitable remedy, courts award when fair to do so
What are the 3 types of duress in contract law ?
Undue influence
Duress
Economic duress
What is undue influence ?
A relationship between parties which has been exploited to gain an unfair advantage
What is duress in tort law ?
A party enters into a contract due to threats of violence
What is economic duress ?
A party enters into a contract due to financial threats
