Invalidation by Mistake The law seeks to uphold bargains. It does not readily allow a party to a contract to avoid legal obligations, on the basis of some mistaken private assumption. A limited category of mistake only will avoid a contract. If an objective person looking at the circumstances of an agreement would think that each party has agreed to […]
Most Mistakes do not Negate Contract The law limits the types of mistake, on the basis of which a contract might be avoided. A mistake in the everyday sense will not usually be sufficient to avoid a contract. The fact that a contract proves highly unprofitable, foolish and illogical with the benefit of hindsight or even at the time, is […]
Relief for Mistake at Common Law I At common law, rescission is automatic and the contract is void. Restitution may apply in order to reset the pre-contract position. The equitable remedy is more tailored to the injustice, so that a court order is more likely to be required. A party to a contract the subject of an operative mistake may […]
Overview A contract may be negated by the misrepresentation of one party. A misrepresentation is a statement which is untrue, which induces a party to enter a contract. Errors and in some circumstances, omissions, may amount to a misrepresentation. A representation may arise by conduct. A representation may become part of the contract. The breach may be either a breach of condition […]
Overview of Recourse A misrepresentation (deliberate, negligent or innocent) generally gives the right to the innocent party to cancel the contract. In some circumstances, there may also be a right of compensation, as set out below. In the case of a sale of goods or supply of services, damages (compensation) may be awarded for the loss caused by a careless […]
No General Duty to Disclose If one party to a contract makes a statement of fact or intent on which the other party relies to his detriment in entering the contract, then the contract may be set-aside or there may be a right of compensation. The misstatement or misrepresentation need not be intentional. It may range from being deliberate, to […]
Negating Contracts by Pressure and Influence An agreement to which consent is not freely given may be invalid. However, the categories of pressure which will invalidate an agreement are limited. Agreements are frequently entered under economic and personal pressure. Such ordinary pressures will not avoid a contract. There are a number of circumstances in which agreements may potentially be invalidated […]
Negating Contracts by Pressure and Influence An “agreement” to which consent is not freely given may be invalid. However, the categories of pressure which invalidate an agreement are limited. Agreements are frequently entered under economic and personal pressure. Such ordinary pressures will not avoid a contract. There are a number of circumstances in which agreements may potentially be invalidated by […]
Negating Contracts by Pressure and Influence An agreement to which consent is not freely given may be invalid. However, the categories of pressure which will invalidate an agreement are limited. Agreements are frequently entered under economic and personal pressure. Such ordinary pressures will not avoid a contract. There are a number of circumstances in which agreements may potentially be invalidated […]
Invalidating Duress Duress covers a range of types of pressure and influence. It may range ranging from threats or actual direct unlawful violence to the application of other, less direct unlawful pressures. Duress involving the threat of personal violence clearly negates consent and contracts thereby entered. There may be criminal liability. There may be duress against goods. It may arise, […]
Contract Mistakes & Other Mistakes Many of the circumstances in which restitution is allowed, might be categorised as deriving from a mistake in its broadest sense. A mistake may be a basis for unjust enrichment. It may be the unjust factor allowing recovery by way of restitution. This broader concept of a mistake is discussed later in this section. Where […]
Improper Pressure Equitable principles of undue influence may give relief from transactions entered by persons under improper pressure. Relief against undue influence seeks to protect persons who are vulnerable to having an advantage taken of them. Where undue influence exists or is presumed, the law deems that the contract has not been freely entered, and accordingly that it may be […]