Coercion in Contract Law

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What is the key remedy for undue influence in a contract?

Restitutio in integrum

Who has the onus of proving that undue influence occurred in a contract?

The party alleging undue influence

What does the innocent party in a contract have the right to do if undue influence is proven?

Set aside the legal consequences of the contract

If the innocent party decides to uphold the contract, what are they bound by?

The terms of the contract Signup and view all the answers

When can the innocent party rescind the contract?

Upon communicating the decision to the other party Signup and view all the answers

What duty arises on both parties if the contract is rescinded?

To restore and/or return any performance made under the contract Signup and view all the answers

What are the requirements for a misrepresentation to be valid?

<ol> <li>A false statement of fact(s) 2. Be material 3. Made by a contracting party or someone for whom 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

What are the two types of misrepresentation regarding false statements of fact(s)?

Express statement and active concealment Signup and view all the answers

What is designed concealment in the context of misrepresentation?

Intentional concealment of information that the person is under a duty to disclose Signup and view all the answers

In the case of Dibley v Furter 1951 (4) SA 73 (C), why was F held liable to D?

For non-disclosure of the existence of the graveyard Signup and view all the answers

What action did F take prior to selling the farm to D?

F ploughed over the graveyard and removed all visible traces of it Signup and view all the answers

What was the impact of F's actions in the Dibley v Furter case?

F's actions led to D being unaware of the graveyard's existence Signup and view all the answers

What is the main concept behind coercion in contract law?

Forcing the victim to choose between entering the contract or suffering harm. Signup and view all the answers

What factor determines the reasonableness of fear in a coercion situation?

The threat must be sufficiently grave to affect the mind of a reasonably steadfast person. Signup and view all the answers

In the case of Paragon Business Forms (Pty) Ltd v Du Preez, what was the court's opinion regarding the alleged fear of the respondent?

The court found that the alleged fear was illogical and unreasonable. Signup and view all the answers

What is the main object of the threat in a duress situation?

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

Why is proof of protest sometimes required in cases of duress?

To prove the involuntary nature of the transaction. Signup and view all the answers

What is the significance of the imminence of harm in a duress situation?

The threat must be imminent or inevitable. Signup and view all the answers

What circumstances make disclosure obligatory?

Omission of facts creating a misleading impression, change in circumstances making a statement incorrect, relying on a person's skill for a contract, and insurance contracts regarding risk. Signup and view all the answers

How is misrepresentation distinguished from other pre-contractual misstatements?

Misrepresentation is distinguished from warranties, opinions, puffs, and dicta et promissa in pre-contractual negotiations. Signup and view all the answers

What are the remedies for misrepresentation in a contract?

Cancellation of contract (action redhibitoria) or suing for a reduction of the purchase price (action quanti minoris). Signup and view all the answers

When is non-disclosure considered actionable in a contract?

Non-disclosure of a fact is actionable if the party remaining silent is under a 'duty' to reveal the fact. Signup and view all the answers

What are some examples of pre-contractual misstatements that are not considered misrepresentations?

Warranties or contractual terms, opinions, statements as to the future, and statements of law. Signup and view all the answers

What renders a contract void when it comes to intentional misrepresentation?

Intentional misrepresentation renders a contract void. Signup and view all the answers

What is the outcome of a contract in the case of negligent misrepresentation?

Negligent misrepresentation renders a contract voidable. Signup and view all the answers

How is innocent misrepresentation different from intentional and negligent misrepresentation?

Innocent misrepresentation renders a contract voidable. Signup and view all the answers

What are the possible remedies in the case of negligent misrepresentation?

Set aside contract, enforce contract, and claim damages if loss suffered. Signup and view all the answers

In which scenario can damages be claimed for misrepresentation?

Damages can be claimed in the case of negligent misrepresentation. Signup and view all the answers

What is the key factor inducing the representee to contract in cases of misrepresentation?

Belief in the false fact represented. Signup and view all the answers

Coercion in Contract Law

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Questions and Answers

What is the key remedy for undue influence in a contract?

Who has the onus of proving that undue influence occurred in a contract?

What does the innocent party in a contract have the right to do if undue influence is proven?

If the innocent party decides to uphold the contract, what are they bound by?

When can the innocent party rescind the contract?

What duty arises on both parties if the contract is rescinded?

What are the requirements for a misrepresentation to be valid?

What are the two types of misrepresentation regarding false statements of fact(s)?

What is designed concealment in the context of misrepresentation?

In the case of Dibley v Furter 1951 (4) SA 73 (C), why was F held liable to D?

What action did F take prior to selling the farm to D?

What was the impact of F's actions in the Dibley v Furter case?

What is the main concept behind coercion in contract law?

What factor determines the reasonableness of fear in a coercion situation?

In the case of Paragon Business Forms (Pty) Ltd v Du Preez, what was the court's opinion regarding the alleged fear of the respondent?

What is the main object of the threat in a duress situation?

Why is proof of protest sometimes required in cases of duress?

What is the significance of the imminence of harm in a duress situation?

What circumstances make disclosure obligatory?

How is misrepresentation distinguished from other pre-contractual misstatements?

What are the remedies for misrepresentation in a contract?

When is non-disclosure considered actionable in a contract?

What are some examples of pre-contractual misstatements that are not considered misrepresentations?

What renders a contract void when it comes to intentional misrepresentation?

What is the outcome of a contract in the case of negligent misrepresentation?

How is innocent misrepresentation different from intentional and negligent misrepresentation?

What are the possible remedies in the case of negligent misrepresentation?

In which scenario can damages be claimed for misrepresentation?

What is the key factor inducing the representee to contract in cases of misrepresentation?

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