Duress Contract Law

Undue influence occurs when the aggrieved person acts of their own free will.

The onus is on the innocent party to prove that undue influence did not occur.

Restitutio in integrum is a remedy that attempts to punish the guilty party.

If the innocent party chooses to uphold the contract, they are not bound by its terms.

If the innocent party elects to rescind the contract, they must communicate their decision to the other party.

After rescinding the contract, neither party has a duty to restore any performance made in terms of the contract.

A threat to bring a civil action is considered an unlawful threat.

Undue influence involves direct and overt pressure on a person to enter into a contract.

Duress requires that the threatened party has a reasonable alternative to succumbing to the threat.

Damage in the context of duress refers to emotional distress.

Undue influence typically occurs between strangers.

A person alleging duress must show that they have become subject to obligations that they would have incurred anyway.

A false statement of fact is a type of warranty or contractual term.

Non-disclosure of a fact is always actionable.

Disclosure is obligatory in certain circumstances, including where an omission of facts has created a misleading impression.

A statement of opinion is a type of misrepresentation.

A party can cancel a contract or sue for reduction of purchase price in the case of misrepresentation.

Intentional misrepresentation renders a contract voidable.

Negligent misrepresentation is a type of misrepresentation made with the intention of persuading the other party to conclude the contract.

Innocent misrepresentation renders a contract void.

Damages can be claimed as a remedy for innocent misrepresentation.

A contract can be set aside as a remedy for negligent misrepresentation.

Intentional misrepresentation is made with an honest belief in its truth.

In general, there is a duty on a party negotiating a contract to reveal information known to them 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, the omission is not actionable.

A party has a duty to inform by operation of a rule of law only in cases of misrepresentation.

A misrepresentation must be made by a third party to the contract to be actionable against the other party.

A reasonable person's opinion is not relevant in determining whether a statement made is a material misrepresentation.

Misrepresentation by an independent third party is only actionable against the party that made the misrepresentation.