vitiating factors Flashcards
what factors in vitiating factors
misrepresentation, including omission in consumer contexts
economic duress
what are vitiating factors
it is a pre-contractual issue, something that occurs prior to the point of contract formation, namely, acceptance of an offer
what can vitiating factors be
either a wrongful action, statement or duress by D during contractual negotiations that makes the contract void or voidable
what happens if a suffering party enters a contract
enters into a contract but subsequently discovers that they were subject to a vitiating factor, meaning the suffering party has the option to make the contract void of they wish
what is the note that the contract is not form the point of discovery
vitiating factor automatically void but rather becomes voidable
what is a void in the contract
a contract that is “void” cannot be enforce by wither party. law treats a void contract as if it had never been formed
what is a voidable contract
a contract is valid but that can be declared invalid at the request of the parties
what does it mean if a contract is valid
it is enforceable
what does it mean if the contract is not valid
then the contract may not exists all or it may exists but become ‘voidable’- void contract are those that never existed for not reason pr another
what is misrepresentation
it is an untrue statement, material fact, made by a party to the contract this could be the offeror or the offeree, induces the other party to enter into a contract
what is undue influence
where there exists a relationship between the parties which has been expolited by one party to gain an unfair advantage…
what is enable in undue influence
this will enable the person influenced to have the contract set aside as against a party who subjected the other to such influence
what undue influence in duress
in a contractual law relates to where a person enters an agreement as a result of threats. were a party enters a contract bc of duress they may have the contract set aside
what is undue influence in economic duress
is where someone enters into an agreement as a result of financial threats
What are the different terms of misrepresentation
Fraudulent
Negligent
Innocent/statutory - misrepresentation act 1967
What case link to express of misrepresentation
Oscar v Williams - the car is a “1984 morris 10 saloon”
What case link to implied of misrepresentation
Spice girls Ltd v Aprillia world service- taking part in photo shoots advertise motorbikes- in this case was implied by conduct
What must be in an untrue statement in misrepresentation
Must be one that is not true or accurate and may be in any written form, spoken or by conduct
What are the two case that link to untrue statement
Fletcher v Krell
Spice girls v aprilla world service
What happen in Fletcher v Krell (untrue statement)
Silence cannot be a misrepresentation, governess not obliged to tell potential employers that she was divorced
What happen in spice girls Ltd v Aprillia world service (untrue statement )
Misrepresentation can be by conduct. Filing promotional material was a representation that none of the spice girls intended to leave the group
What is meant by change of circumstance half truth
There may be a misrepresentation bc the party tells a half truth or says something that later becomes untrue
Cases link to change of circumstance half truth
Dimmock v Hallett
With v O’flanagan
What happen in dimmock v hallett
Seller of land said that there were tenants on the land, but not they were all leaving. Part-truth was misrepresentation
What happen in with v o’flanagan
Doc stated profits of his medical practice but then lost patients when he became ill and did not tell the purchaser. He should have corrected the info before he offer was accepted
What subsection are in confidential relationships
Fiduciary relationships
Utmost good faith
What is fiduciary relationships in confidential relationships
Relationship of trust. Would include- doctor/patient or financial adviser/client
Case link to fiduciary relationships
Tate v Williamson
What happen in Tate v Williamson 1866
Williamson was asked to provide natural advice to a young man with lots of student debt. He had to sell his land to pay the debt he bought the land at half its value. He knew this and did not disclose it to the young man..
What is meant by utmost good faith in confidential relationships
All material facts must be disclosed
Case link to utmost good faith
Lambert v cooperative insurance
What happen in lambert v cooperate insurance
Where the insurance company could refuse to pay claim bc woman had not told them about her husband’s conviction for conspiracy to steal when she took out the policy
What act is insurance contract consumer
Consumer insurance (disclosure and representations) act 2012
What does a consumer have a duty of (insurance contracts)
To take reasonable care not to male a misrepresentation to the insurer
What is carelessly representation (insurance contract)
Insurer cannot avoid the contract, but can make a reduction
What is meant by deliberate or reckless in insurance contracts
Insurer can avoid the contract ad refuse all claims (usually without having to return the premiums that have been paid)
What is meant by statement of material fact
One which would have led a reasonable person to enter into the contact and which had
What is meant by a statement of opinion or belief
Doesn’t amount to a misrepresentation unless the maker of statement is an expert or in a betrayer position to know truth. May be a misrepresentation if the marker of the statement does not he lost hold that opinion
What three cases link to statement must be one of material fact not one of opinion
Basset v Wilkinson 1927
Edgington v Fitzmaurice 1885
Smith v land and house property corporation 1994
What happen in Bisset v Wilkinson 1927
No misrepresentation, seller of farmland gabe his honest opinion about number of sheep land could hold
What happen in Edginton v Fitzmaurice 1885
Yea, company said investment was to be used for alternations to building but really intend to use it to pay off debts, misrepresentation of fact
What happen in smith v land and house property corporation 1884
Yes, said that someone was a ‘most desirable tenant’ when they knew he was in arrears with rent
