Vitiating Factors

Question 1

explain vitiating factors

Answer 1

if all rules of formation of a contract have been complied with, contract may still not be perfect.

vitiating factors = defects in a contact
- may operate to invalidate an otherwise validly formed contract

to vitiate = “to impair the quality of, to corrupt”

the role of law is to provide remedy to party who may not have wished to enter contract given full knowledge of the vitiating factor at time of formation

Question 2

two vitiating factors

Answer 2

1. misrepresentation
2. economic duress

both can make a contract voidable

Question 3

void contracts

Answer 3

in the case of certain vitiating factors the effect of demonstrating the presence of the vitiating factor to the court’s satisfaction is to render the contract void

void:
- as though the contract has never existed
- no validity so no enforceability in law

Question 4

voidable contracts

Answer 4

where a contract is voidable there are different possibilities

the VF is identifies and acknowledged, but this does not nece mean the contract is at an end

party who has entered a contract that is voidable for a VF can:
- continue with contract if that is to their benefit
- avoid their responsibilities under the contract and set it aside