Coercion in Contract Law

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

The court found that the alleged fear of the respondent was illogical and unreasonable as there was no threat of dismissal expressed.

The threat must be directed at the life, bodily integrity, property, or immediate family.

<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 to induce the other party to enter the contract.</p> Signup and view all the answers

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

<p>If undue influence is proven and he or she elects to rescind the contract.</p> Signup and view all the answers

<p>A duty to restore and/or return any performance that has been made in terms of the contract.</p> Signup and view all the answers

<p>The party alleging undue influence.</p> Signup and view all the answers

<p>He or she is bound by its terms.</p> Signup and view all the answers

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

<p>To set aside the legal consequences of the contract and restore the parties to their pre-contract position.</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, where a party intentionally withholds information to deceive the other party.</p> Signup and view all the answers

<p>Designed concealment, or non-disclosure, is the intentional concealment of information that a person is under a duty to disclose.</p> Signup and view all the answers

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

<p>F, the seller, failed to disclose the existence of a graveyard close to the house, which resulted in legal liability for non-disclosure.</p> Signup and view all the answers

<p>Misrepresentation through active concealment involves failing to correct a false impression, leading to deception of the other party.</p> Signup and view all the answers

<p>Designed concealment, or non-disclosure, involves intentionally withholding information that should be disclosed, creating a false impression.</p> Signup and view all the answers

<p>Disclosure is obligatory when an omission of facts has created a misleading impression, when a statement made is no longer correct due to changed circumstances, when relying on a person's skill to contract, and when law requires full disclosure (e.g. in insurance contracts regarding risk).</p> Signup and view all the answers

<p>Misrepresentation involves false statements of fact, while other pre-contractual misstatements include warranties or contractual terms, opinions, statements as to the future, statements of law, puffs, and dicta et promissa.</p> Signup and view all the answers

<p>The remedies for misrepresentation include canceling the contract through an action redhibitoria or suing for a reduction of the purchase price through an action quanti minoris.</p> Signup and view all the answers

<p>Non-disclosure of a fact is actionable when the party remaining silent is under a &quot;duty&quot; to reveal the fact.</p> Signup and view all the answers

<p>The concept of duty in non-disclosure emphasizes the legal obligation of a party to reveal certain facts to ensure transparency and fairness in contractual agreements.</p> Signup and view all the answers

<p>Misrepresentation by silence occurs when a party fails to disclose a fact that they are duty-bound to reveal, whereas other forms of misrepresentation involve actively making false statements.</p> Signup and view all the answers

<p>Full disclosure is crucial in insurance contracts regarding risk to ensure that all relevant information is provided to accurately assess and mitigate potential risks.</p> Signup and view all the answers

<p>Causal misrepresentation is a misrepresentation that results in a contract being formed.</p> Signup and view all the answers

<p>Causal misrepresentation persuades a party to enter into a contract, while incidental misrepresentation results in less advantageous terms for a party.</p> Signup and view all the answers

<p>The types of misrepresentation discussed are intentional (fraudulent) misrepresentation, negligent misrepresentation, and innocent misrepresentation.</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>A party may obtain rescission and restitution for a causal misrepresentation, but not for an incidental one.</p> Signup and view all the answers

<p>Intention is crucial in misrepresentation cases as the misrepresentation must be made with the intention of inducing the contract.</p> Signup and view all the answers

<p>If a party would have contracted irrespective of the misrepresentation, there would be no rescission.</p> Signup and view all the answers

<p>An incidental misrepresentation could lead to less advantageous terms for a party but does not induce the contract.</p> Signup and view all the answers

<p>In Bird v Murphy 1963 (2) PH A42 (D), the misrepresentation must have persuaded the party to enter into the contract.</p> Signup and view all the answers