Coercion in Contract Law

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

The court concluded that the alleged fear was illogical and unreasonable.

Life, bodily integrity, property, or immediate family.

<p>Proof of protest at the time of payment or contract entry.</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>No reasonable or acceptable alternative available</p> Signup and view all the answers

<p>If used to extort a benefit the Creditor is not entitled to or if the debtor is innocent of the alleged crime</p> Signup and view all the answers

<p>Improper pressure</p> Signup and view all the answers

<p>Close relationship between parties</p> Signup and view all the answers

<p>Weakens the capacity to resist and renders the person pliable</p> Signup and view all the answers

<p>That they have become subject to obligations they would not otherwise have incurred</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 who’s 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>Express statement is a verbal statement or implied from conduct, while active concealment is the failure to correct a false impression.</p> Signup and view all the answers

<p>Designed concealment, also known as non-disclosure, refers to intentional concealment of information that the person 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>F ploughed over the graveyard and removed all visible traces of the graveyard.</p> Signup and view all the answers

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

<p>a) if party’s conduct is wholly or partly responsible for other’s ignorance b) if the contract requires parties to work together in a relationship of trust &amp; confidence c) if the party is involuntarily dependent on him for frank disclosure due his particular knowledge d) Fair dealing</p> Signup and view all the answers

<p>The test is whether the statement made would have induced a reasonable person to enter into the contract, or if a reasonable person would have been dissuaded from entering into the contract if disclosure had been made.</p> Signup and view all the answers

<p>Misrepresentation must be made by a party to the contract or agent with relevant authority to conclude a contract.</p> Signup and view all the answers

<p>Pretorius v Nata South Sea Investment Trust Ltd 1965 (3) SA 410(W)</p> Signup and view all the answers

<p>The right to have such information communicated would be mutually recognized 'by honest men in the circumstances'.</p> Signup and view all the answers

<p>Misrepresentation by an independent third party is only actionable against the third party based on delict.</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>Causal misrepresentation results in a contract being formed, while incidental misrepresentation does not induce the contract but leads to 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>If the party would have contracted irrespective of the misrepresentation.</p> Signup and view all the answers

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

<p>The misrepresentation itself must have persuaded the party to enter into the contract.</p> Signup and view all the answers