WEEK 10 Flashcards
(16 cards)
Grounds when impeaching a contract
- Mistakes
- Misrepresentation
- Undue Influence
- Unconscionability
- Duress
- Requirement of writing
What is the concept of a mistake in a contract?
- Mutual or unilateral
- Mistake in terms
- Mistake in assumptions
What are the actions to be taken for a typo?
- It can be rectified but must have evidence of the actual correct terms
Define non est factum
- ‘Not my doing’
- Only applies for contracts where it was drafted by one party with not time for the other party to read it
What are the kinds of mistakes as to terms?
- Unilateral mistake
- Misunderstanding and ambiguities
What are the kinds of mistakes in assumptions
- Regarding subject matter
- Regarding value
- Frustration
Mistakes in third parties
What if A and B had a void contract and C got the goods from B
C had to go for A since the contract between A and B technically never existed
What is a voidable contract?
Voidable at the option of a party
What is material misrepresentation?
Did the statement influence the you to enter into the contract? Would a reasonable person till enter into the contract without the statement?
Must be a misstatement of fact
Remedies for material misrepresentation
Fraudulent/Negligent = Recission + damages
Innocent = Recission only
What are the kinds of undue influence?
- Unconscionability
- Duress
What is undue influence
Unequal bargaining power
Examples of undue influence
- By virtue of relationship
- By virtue of circumstances
- Threat of prosecution
What is unconscionability
Is it fair?
Explain the concept of duress
Any form of threat to do something, physical or mental
When is writing required?
- Interest in land
- Guarantees
- Agreement not to be performed within one year
- Ratification of infant’s contracts
