Vitiating Factors Flashcards
What are the 4 vitiating factors
Duress and Undue Influence
Illegality
Misrepresentation
Mistake
What is Duress? Give an example
Where the individual has been forced or coerced into a contract by threats, unfair pressures or unreasonable influences
Example: Promising violence if the Contractor does not accept the contract
What is Undue Influence? Give an example
The Contractors lawyer wanting the Contractor to sign the contract even though the Contract would result in a loss for the Contractor.
What is Illegality? Give an example for both laws
A breach in the contract between two or more parties. This may a breach of statutory law (expressed) or common law (implied)
Example:
Implied: Illegal immigrants working on site
Expressed: Working on Saturdays although a restriction has been expressed in the contract.
What is Misrepresentation? Give an example
A false statement which persuades a party to enter into a contract.
Example: The client promising bonus’ if the work is completed early but does not.
What is a Mistake? Give an example
Where both parties have entered a contract under the same fundamental (substantial) mistake.
Example: Buyer and Seller both believe the house was owned by someone famous however it was found not true. This makes the contract substantially different.
What does Considered Legally Binding mean? Give an example of Consideration
An agreement has been consciously made by the both parties and both parties are aware of what they are agreeing too. Both parties must follow the actions
The contractor earning £500 for replacing windows. The consideration is the £500.
The consideration is also replacing the windows??
Deeds are not a consideration. Because it is an indication that the parties intend to be bound.
What are other words for legal?
Valid, Illicit, Legitimate, Binding, Permitted by Law
What makes a Valid Contract?
The main 3 are:
Offer
Acceptance
Consideration
Intention to create a legal relationship
Capacity of the parties to perform
Genuine Consent (no vitiating factors)
Legality- Conditions which must be upheld during the contract making
What do ‘terms’ mean in a Contract?
Conditions
Warranties
Promises
Terms define what is to be done and how it is to be done.
