Coercion in Contract Law

Coercion operates on the mind of the victim by forcing him/her to choose between entering the contract or suffering harm.

The threat must be sufficiently grave to affect the mind of a reasonably steadfast person.

The more unreasonable the fear, the greater will be the reluctance of the court to accept that it actually induced the contract.

<p>The court found that there was no threat of dismissal and that the alleged fear by the respondent was illogical and unreasonable.</p> Signup and view all the answers

<p>The threat must be directed at the life, bodily integrity, property, or immediate family.</p> Signup and view all the answers

<p>To prove the involuntary nature of the transaction.</p> Signup and view all the answers

<p>No, generally silence is not indicative of free consent.</p> Signup and view all the answers

<p>The threat must be imminent or inevitable.</p> Signup and view all the answers

<p>Representation of a false fact made fraudulently, believed by the representee, inducing to contract.</p> Signup and view all the answers

<p>Negligent misrepresentation involves a false fact made negligently, believed by the representee, rendering the contract voidable.</p> Signup and view all the answers

<p>Representation of a false fact made innocently, believed by the representee, inducing to contract.</p> Signup and view all the answers

<p>Intentional (fraudulent) misrepresentation.</p> Signup and view all the answers

<p>Restitutio in integrum</p> Signup and view all the answers

<p>Negligent misrepresentation and innocent misrepresentation.</p> Signup and view all the answers

<p>Setting aside the contract, enforcing the contract, and claiming damages if loss suffered.</p> Signup and view all the answers

<p>To prove it occurred</p> Signup and view all the answers

<p>If they choose to uphold the contract</p> Signup and view all the answers

<p>Misrepresentation made knowingly or without honest belief in its truth, persuading the other party to conclude the contract.</p> Signup and view all the answers

<p>The contract terminates upon receipt of notice</p> Signup and view all the answers

<p>Innocent misrepresentation involves a false fact made innocently, without the intention to deceive.</p> Signup and view all the answers

<p>To restore and return any performance made in terms of the contract</p> Signup and view all the answers

<p>Yes, a contract can be enforced in the case of innocent misrepresentation.</p> Signup and view all the answers

<p>The belief of the representee in the false fact presented.</p> Signup and view all the answers

<p>Restitutio in integrum</p> Signup and view all the answers

<p>The innocent party</p> Signup and view all the answers

<ol> <li>A false statement of fact(s) 2. Be material 3. Made by a contracting party or someone for whose actions he assumes responsibility 4. Made with the intention of persuading the other party to conclude the contract 5. Made in such a way that the other party believes the facts to be as represented and concludes the contract on the basis of the misrepresented facts</li> </ol> Signup and view all the answers

<p>Active concealment refers to the failure to correct a false impression, whether through express or implied conduct.</p> Signup and view all the answers

<p>Misrepresentation must be made with the intention of inducing the other party to contract.</p> Signup and view all the answers

<p>If the party would have contracted irrespective of the misrepresentation.</p> Signup and view all the answers

<p>Designed concealment, or non-disclosure, involves intentionally concealing information that one is under a duty to disclose.</p> Signup and view all the answers

<p>F sold a farm to D without disclosing the existence of a graveyard located close to the house.</p> Signup and view all the answers

<p>Causal misrepresentation results in a contract being formed, while incidental misrepresentation does not induce the contract but results in less advantageous terms for a party.</p> Signup and view all the answers

<ol> <li>Intentional (fraudulent) misrepresentation. 2. Negligent misrepresentation. 3. Innocent misrepresentation.</li> </ol> Signup and view all the answers

<p>F had ploughed over the graveyard and removed all visible traces of the graveyard.</p> Signup and view all the answers

<p>The misrepresentation must be made with the intention of inducing the other party to contract.</p> Signup and view all the answers

<p>It was held that F was liable to D for non-disclosure of the existence of the graveyard.</p> Signup and view all the answers

<p>Causal misrepresentation results in the formation of a contract, while incidental misrepresentation may lead to less advantageous terms but not the contract itself.</p> Signup and view all the answers

<p>F did not disclose the existence of the graveyard close to the house, which was a material fact affecting the sale.</p> Signup and view all the answers

<p>Bird v Murphy 1963 (2) PH A42 (D)</p> Signup and view all the answers