week 4

Question 1

What are the two things to void a contract

Answer 1

-there is no need to have a court decree to declare that it is void
-No one can acquire rights under such a contract, is not possible to pass good title to property under a void contract

Question 2

Requirements for annulment

Answer 2

Restutio in integrum be possible
case-Wesatern bank of Scotland v Addie

2) the contract has not been affirmed

3) there has been no unneccessary delay in taking actions to annul

Question 3

Example of conduct that constitutes force and fear

Answer 3

Earl of orkney v Vinfra
Threat of physical assailt
-threat of defamatory conduct

the fear is the main element

However
NOT a threat to take legal action to enforce a valid debt (Priestnell v Hutcheson (1857) 19 D. 495)
BUT if threat of legitimate action compels party to enter into an obligation he wouldn’t otherwise have agreed to, becomes duress (Hislop v Dickson Motors (Forres) Ltd. 1978 S.L.T. (Notes) 73)

Question 4

Facility and circumvention

Answer 4

mackay V campbell
weakness and facility
circumvention and loss

Question 5

Undue influence

Answer 5

One party has assumed a position of influence over the othe rand abuses that postion toe nter into a contract with the subservient party
-Can be voidable if

Relationships of influence/trust/confidence
Dominant party recieved a substanial benefit from the contract
-Subserbient party did not recieve independent advice Smyth v Roamnes executors

Question 6

A) error which prevent formation of the contracct

Answer 6

One situation which is often analysed as error is that where the parties, on an objective assessment, misunderstand what each other is thinking about one of the essentials of the contract. However, this is more accurately analysed as dissensus, a lack of consensus in idem.

Murhead and Turnbull v Dickson
Mathieson Gee LTD v quiqley

Question 7

B)uninduced unitlateral error/shared

Answer 7

Error goes to the root of the contract,its void
if an uninduced mutual error doesnt go to the root of the contract,it will not be operative
Examples
-Sale of good act 1979,s6 contract of sale void if goods have perished at time of sale unbeknownst to either party

Question 7

Key case for desensus in idem

Answer 7

-Morrison v Robertson
Morrison purports to sell cows to Telford
Telford had lied and said he was the son of Wilson and was buying the cows on WIlsons behalf
-Telford didnt pay court held that there was no contract
-Telford had tried to sell on to Robertson but morrison able to reclaim cows

Question 8

C) uninduced Unilateral error

Answer 8

Uninduced-not caused by one party or another
-unilateral held by only one party

General rule is that uninduced unilateral error on its own does not make the contract invalid – party b is entitled to assume that party A means what they are saying, and does not need to point out that A is making a bad bargain.

Question 9

C) uninduced unilateral error cases

Answer 9

Challenges allowed on the basis that the other party knew about the error during the negoatiation of the contract and did not do anythign to correct it

Sword v Sinclair (1771) – Void

Very old case where the contract was declared void due to known error.

Steuart’s Trustees v Hart (1875) – Voidable

Landmark modern case. Court allowed reduction because the buyer knew of the seller’s error and took advantage.

Lord President Inglis: “essential error known to the purchaser and taken advantage of by him.”

Question 10

General big rule on uninduced unilateral error

Answer 10

-An uninduced unilateral error
-root of the contract,if they known the truth wouldnt have entered
-the other party is aware of the error doesnt do anything(bargain),not acting in good faith
Chee kin keon v Diglandmail.com pte Ltd 2004 singaporean case
or
The contract was entered into gratuitouly

Question 11

D) Misrepresentation

Answer 11

misrepresentation must have been an inaccurate statement either of fact or law

-Where there is a fiduciary dyty/quasi-fiduciary relationship such as solitior and client
-Where the contract is one of utmost good faith
-where person makes a statement they think is true but then realise is false,it is fraudulent concealment not to correct the error
where a party tells a half truth

Question 12

All three types of representation

Answer 12

Innocent,Fraudualent and careless

Question 12

A contract is only possible if

Answer 12

-Restutio integrum is possible

Question 13

Innocent misrepresentation

Answer 13

Contract avoided and price restored,if resittutio integrum is possible
(It can thus be seen that where restitutio in integrum is not possible, a party who has suffered through an innocent misrepresentation may be left without a remedy.)

Question 14

Fraudulent misrepresentation

Answer 14

-contract avoided and price restored, provided restitutio in integrum is possible
-Can sue for damages in delict, but must show the misrepresenter knew statement was false, or believed it was false and was recklessly indifferent to whether it was true or false

Question 15

Careless Misrepresentation

Answer 15

-contract avoided and price restored, provided restitutio in integrum is possible
-Can sue for damages in delict, but must show the misrepresenter owed them a duty of care, and broke it by carelessly making false statement.