30 Questions
What is the key factor regarding the reasonableness of fear in cases of coercion?
Threat must be sufficiently grave to affect the mind of a reasonably steadfast person.
In the case of Paragon Business Forms v Du Preez, what did the court conclude about the alleged fear of the respondent?
The court concluded that the alleged fear was illogical and unreasonable.
What objects must a threat be directed at to constitute duress?
Life, bodily integrity, property, or immediate family.
What proof might be required in some cases to establish the involuntary nature of a transaction under duress?
Proof of protest at the time of payment or contract entry.
Is silence at the time of payment or contract entry considered indicative of free consent?
No, generally silence is not indicative of free consent.
Why is the imminence of harm important in cases of duress?
The threat must be imminent or inevitable.
What must the threatened party show if the harm is not imminent or inevitable?
No reasonable or acceptable alternative available
When is a threat considered unlawful in the context of duress?
If used to extort a benefit the Creditor is not entitled to or if the debtor is innocent of the alleged crime
What type of pressure characterizes undue influence?
Improper pressure
What relationship dynamic is often associated with undue influence?
Close relationship between parties
In the context of undue influence, what effect does the influence have on the aggrieved person?
Weakens the capacity to resist and renders the person pliable
According to Broodryk vs Smuts, what must a person alleging duress demonstrate?
That they have become subject to obligations they would not otherwise have incurred
What are the requirements for a misrepresentation to be legally valid in a contract?
- 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
What is the difference between express and active concealment misrepresentation?
Express statement is a verbal statement or implied from conduct, while active concealment is the failure to correct a false impression.
What is designed concealment in the context of misrepresentation?
Designed concealment, also known as non-disclosure, refers to intentional concealment of information that the person is under a duty to disclose.
In the case of Dibley v Furter 1951, what led to the liability of F towards D?
F sold a farm to D without disclosing the existence of a graveyard located close to the house.
How did F attempt to hide the existence of the graveyard in the Dibley v Furter case?
F ploughed over the graveyard and removed all visible traces of the graveyard.
What was the legal outcome in Dibley v Furter concerning non-disclosure of the graveyard?
F was held liable to D for non-disclosure of the existence of the graveyard.
What are the exceptions where omission of information is considered actionable?
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 & confidence c) if the party is involuntarily dependent on him for frank disclosure due his particular knowledge d) Fair dealing
What is the test to determine material misrepresentation?
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.
Who can make a misrepresentation in a contract?
Misrepresentation must be made by a party to the contract or agent with relevant authority to conclude a contract.
In what case does a party have a duty to inform by the operation rule of law?
Pretorius v Nata South Sea Investment Trust Ltd 1965 (3) SA 410(W)
What is the standard for fair dealing in terms of disclosing information during contract negotiations?
The right to have such information communicated would be mutually recognized 'by honest men in the circumstances'.
When is misrepresentation by an independent third party actionable?
Misrepresentation by an independent third party is only actionable against the third party based on delict.
What is the key requirement for misrepresentation to induce a contract?
Misrepresentation must be made with the intention of inducing the other party to contract.
In the context of misrepresentation, what distinguishes a causal misrepresentation from an incidental one?
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.
What are the three types of misrepresentation discussed in the text?
- Intentional (fraudulent) misrepresentation. 2. Negligent misrepresentation. 3. Innocent misrepresentation.
When would there be NO rescission even in the presence of misrepresentation?
If the party would have contracted irrespective of the misrepresentation.
What legal case exemplifies that a party may obtain rescission for a causal misrepresentation but not for an incidental one?
Bird v Murphy 1963 (2) PH A42 (D)
Define the term 'induced the contract' in the context of misrepresentation.
The misrepresentation itself must have persuaded the party to enter into the contract.
Explore the concept of coercion in contract law, where a victim is forced to choose between entering a contract or facing harm. Understand the reasonableness of fear and how it affects the validity of a contract, with reference to legal cases such as Paragon Business Forms (Pty) Ltd v Du Preez 1994 (1) SA 434 (SE).
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