Contract Law: Coercion and Reasonable Fear

Disclosure is obligatory when an omission of facts has created a misleading impression.

A person can rely on a statement of a person with a low level of skill to contract Law.

Full disclosure is not required in insurance contracts regarding risk.

Misrepresentation can be distinguished from opinions, statements as to future, and statements of law.

Non-disclosure of a fact is never actionable.

Coercion operates on the physical body of the victim, forcing him/her to choose between entering the contract or suffering harm.

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

A threat must be directed at the life, bodily integrity, or immediate family to be considered duress.

The court will always deny relief if there is no protest at the time of payment or entry into the contract.

The threat must be impossible to fulfill to be considered duress.

Duress involves a threat that affects only the victim's property.

Misrepresentation must be made with the intention of inducing the other party to contract.

A party can obtain rescission and restitution for an incidental misrepresentation.

A misrepresentation is considered causal if it does not induce the contract but results in less advantageous terms for a party.

If a party would have contracted irrespective of the misrepresentation, then rescission is allowed.

There are only two types of misrepresentation: intentional and negligent.

The misrepresentation itself must have persuaded the party to enter into the contract.

There is a general duty on a party negotiating a contract to reveal information known to him that may influence the mind of the other party.

If a party's conduct is wholly or partly responsible for the other party's ignorance, omission is actionable.

A party has a duty to inform the other party about any information that may influence their decision to enter into a contract.

A misrepresentation made by an independent 3rd party is actionable against one of the contracting parties.

A contract requires parties to work together in a relationship of trust and confidentiality.

Fair dealing requires the right to have such information communicated to be mutually recognized 'by honest men in the circumstances'.

Intentional misrepresentation makes a contract voidable.

Negligent misrepresentation can lead to a damages claim if a loss is suffered.

Innocent misrepresentation makes a contract void.

Remedies for intentional misrepresentation include claiming damages.

A negligent misrepresentation is made with the intention of persuading the other party to conclude the contract.

A contract induced by innocent misrepresentation can be enforced.