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A contract entered into due to duress, undue influence, or misrepresentation is deemed void from the start.
A contract entered into due to duress, undue influence, or misrepresentation is deemed void from the start.
False
Duress involves the use of physical force to obtain consent.
Duress involves the use of physical force to obtain consent.
False
A threatened party may not claim restitution and damages if they entered into a contract under duress.
A threatened party may not claim restitution and damages if they entered into a contract under duress.
False
The moral pressure used in duress must be contra bonos mores.
The moral pressure used in duress must be contra bonos mores.
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The threat in duress must be unlawful and the effective cause of the contract.
The threat in duress must be unlawful and the effective cause of the contract.
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Duress involves coercion of the will, not physical force.
Duress involves coercion of the will, not physical force.
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Coercion operates on the physical body of the victim by forcing him/her to choose between entering the contract or suffering physical harm.
Coercion operates on the physical body of the victim by forcing him/her to choose between entering the contract or suffering physical harm.
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The threat must be directed at the life, bodily integrity, or property of a stranger.
The threat must be directed at the life, bodily integrity, or property of a stranger.
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Silence is always indicative of free consent.
Silence is always indicative of free consent.
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The threat must be sufficiently grave to affect the mind of a reasonably steadfast person.
The threat must be sufficiently grave to affect the mind of a reasonably steadfast person.
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The court will always accept that a threat induced the contract if the victim alleges it.
The court will always accept that a threat induced the contract if the victim alleges it.
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A threat must be imminent or inevitable to constitute duress.
A threat must be imminent or inevitable to constitute duress.
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Undue influence can be proven by the aggrieved person.
Undue influence can be proven by the aggrieved person.
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Restitutio in integrum is a remedy that favors the party who exerted undue influence.
Restitutio in integrum is a remedy that favors the party who exerted undue influence.
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The innocent party can choose to uphold the contract despite undue influence.
The innocent party can choose to uphold the contract despite undue influence.
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If the innocent party chooses to rescind the contract, the other party does not have to restore any performance made.
If the innocent party chooses to rescind the contract, the other party does not have to restore any performance made.
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The contract terminates immediately when the innocent party decides to rescind it.
The contract terminates immediately when the innocent party decides to rescind it.
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Restitutio in integrum is only available if the contract was fully performed.
Restitutio in integrum is only available if the contract was fully performed.
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Disclosure is obligatory in cases where an omission of facts has created a misleading impression.
Disclosure is obligatory in cases where an omission of facts has created a misleading impression.
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A false statement of opinion made by one party to another before or at the time of the contract concerning some matter or circumstance relating to it is considered misrepresentation.
A false statement of opinion made by one party to another before or at the time of the contract concerning some matter or circumstance relating to it is considered misrepresentation.
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A party is under a duty to reveal a fact only if they have a contractual relationship.
A party is under a duty to reveal a fact only if they have a contractual relationship.
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Active concealment is a form of implied misrepresentation.
Active concealment is a form of implied misrepresentation.
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A statement of opinion is considered a misrepresentation of fact.
A statement of opinion is considered a misrepresentation of fact.
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Designed concealment is a type of intentional concealment of information.
Designed concealment is a type of intentional concealment of information.
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Non-disclosure of a fact is only actionable if the party remaining silent is under a moral obligation to reveal the fact.
Non-disclosure of a fact is only actionable if the party remaining silent is under a moral obligation to reveal the fact.
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A material statement of fact is one that is made with the intention of persuading the other party to conclude the contract.
A material statement of fact is one that is made with the intention of persuading the other party to conclude the contract.
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Canceling the contract is the only remedy for misrepresentation.
Canceling the contract is the only remedy for misrepresentation.
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Misrepresentation requires a false statement of fact made by a party to the contract.
Misrepresentation requires a false statement of fact made by a party to the contract.
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The party making the misrepresentation must have the intention of deceiving the other party.
The party making the misrepresentation must have the intention of deceiving the other party.
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Study Notes
Introduction to Contract Law
- A contract can be deemed voidable if entered into due to duress, undue influence, or misrepresentation, where consensus has been reached improperly.
- Unlike material mistake, parties are aware of with whom and on what terms they are contracting.
- The contract is valid until misrepresentation, coercion, or undue influence is proven.
Duress
- Duress is improper pressure leading to intimidation, making one party enter a contract out of fear.
- Consent obtained by improper means makes the contract voidable at the option of the threatened party.
- The threatened party can set aside the contract, claim restitution, and damages.
Elements of Duress
- Actual violence or reasonable fear.
- The fear must be caused by the threat of some considerable evil to the party or their family.
- The threat must be of an imminent or inevitable evil.
- The threat or intimidation must be contra bonos mores.
- The moral pressure used must have caused damage.
- The threat must be unlawful.
- The threat must be the effective cause of the contract.
Coercion
- Coercion operates on the mind of the victim, forcing them to choose between entering the contract or suffering harm.
- The threat must be sufficiently grave to affect the mind of a reasonably steadfast person.
- The object of the threat must be directed at the life, bodily integrity, or property, or immediate family.
- There must be proof of protest at the time of payment or entry into the contract, or satisfactory evidence to establish that the contract was concluded as a result of duress.
Undue Influence
- Undue influence occurs when one person exploits their influence to persuade the other party to agree to a transaction that is detrimental to them.
- The remedy for undue influence is restitutio in integrum, which attempts to restore both parties to their original position.
- The innocent party can set aside the contract, restore the original position, and claim restitution and damages.
Misrepresentation
- Misrepresentation is a false statement of fact made by one party to another before or at the time of the contract.
- The misrepresentation must be a false statement of fact, material, made by a contracting party, with the intention of persuading the other party to conclude the contract.
- Non-disclosure of a fact is actionable if the party remaining silent is under a duty to reveal the fact.
- Active concealment, designed concealment, and intentional concealment of information are all forms of misrepresentation.
- The remedy for misrepresentation is cancellation of the contract or reduction of the purchase price.
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Test your knowledge of contracts that are deemed voidable due to duress, undue influence, or misrepresentation. Understand the implications of improper consensus and the rights of the innocent party.
