Undue Influence in Contracts
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Questions and Answers

A waiver of any possible rights in the future is considered valid.

False

An employment contract stating that an employee cannot start her own business after her employment ends would be an example of restraint of trade.

True

Lease agreements historically voided because they allowed sexual business were considered against morals.

True

Surrogate motherhood is forbidden by law in France and Spain.

<p>True</p> Signup and view all the answers

The UK and Netherlands allow commercial surrogacy arrangements.

<p>False</p> Signup and view all the answers

In pari delicto means when one party has been unfairly induced into an illegal contract.

<p>False</p> Signup and view all the answers

If one party has been forced into an unlawful contract due to duress, they may successfully recover money or property.

<p>True</p> Signup and view all the answers

When both parties knowingly commit a crime in a contract, they have legal action to claim against each other.

<p>False</p> Signup and view all the answers

A clause stating that the lessee could not have children because it would harm the furniture is a valid clause in a contract.

<p>False</p> Signup and view all the answers

Morals change with time, making contracts voidable if they are against current societal views.

<p>True</p> Signup and view all the answers

What is the general rule when both parties are guilty of an illegal contract?

<p>No recovery of any money or property</p> Signup and view all the answers

In what case can a victim successfully recover money or property from an illegal contract?

<p>When one party has been unfairly induced into the agreement due to duress or undue influence</p> Signup and view all the answers

What is the effect when both parties knowingly commit a crime in a contract?

<p>No action to claim anything against the other party</p> Signup and view all the answers

In some jurisdictions, which practice is forbidden by law?

<p>Surrogated motherhood</p> Signup and view all the answers

What kind of surrogacy arrangements are allowed in the UK and Netherlands?

<p>Only altruistic surrogacy (reimbursement of expenses)</p> Signup and view all the answers

What concept changes with time, potentially making contracts voidable if they go against current societal views?

<p>Morals</p> Signup and view all the answers

What does 'in pari delicto' refer to in the context of an illegal contract?

<p>Both parties are guilty</p> Signup and view all the answers

Give an example of restraint of trade in an employment contract.

<p>Employee cannot start her own business or work for a competitor after employment ends</p> Signup and view all the answers

When is a waiver of any possible rights in the future considered invalid?

<p>When it waives the rights that one can have in the future</p> Signup and view all the answers

What type of clause would be considered void if it goes against the moral views of society?

<p>A clause allowing sexual business in lease agreements</p> Signup and view all the answers

What is the potential consequence when both parties are guilty of entering an unlawful contract?

<p>No recovery of any money or property</p> Signup and view all the answers

Give an example of restraint of trade in an employment contract.

<p>An employment contract stating that an employee cannot work for a competitor after her employment ends.</p> Signup and view all the answers

What concept can potentially make contracts voidable if they go against current societal views?

<p>Morals</p> Signup and view all the answers

In which jurisdictions is surrogacy forbidden by law?

<p>France and Spain</p> Signup and view all the answers

What kind of surrogacy arrangements are allowed in the UK and Netherlands?

<p>Altruistic surrogacy (reimbursement of expenses only)</p> Signup and view all the answers

What is the effect when both parties knowingly commit a crime in a contract?

<p>They have no legal action to claim anything against each other</p> Signup and view all the answers

What does 'in pari delicto' mean in the context of an illegal contract?

<p>Both parties are guilty</p> Signup and view all the answers

When is a waiver of any possible rights in the future considered invalid?

<p>When it pertains to future rights</p> Signup and view all the answers

Why could a contract be voided if it goes against current societal views?

<p>Because morals change with time</p> Signup and view all the answers

What type of clause in a contract could be considered void if it goes against societal morals?

<p>A clause that restricts economic freedom, like preventing an employee from starting their own business post-employment</p> Signup and view all the answers

What must be proven in court to declare a contract void?

<p>The lack of free consent</p> Signup and view all the answers

Define the concept of duress in the context of contract law.

<p>Where a party uses duress to force the other party into a contract against their will or with unfavorable terms</p> Signup and view all the answers

What type of threats must be present to vitiate consent in a contract?

<p>Illegitimate and severe threats</p> Signup and view all the answers

Give an example of a non-physical threat in the context of a contract.

<p>Threatening to reveal personal information to harm the other party's reputation</p> Signup and view all the answers

What indicators do courts consider when assessing the severity of a threat in a contract?

<p>Whether the threat is illegal and unrelated to the obligations of the other party</p> Signup and view all the answers

What are the three main requirements of threat (duress) for a contract to be voidable?

<p>The nature of the threat must be sufficient to amount to duress, the threat must be illegitimate, and the effect of the threat must have forced the claimant into the contract.</p> Signup and view all the answers

Explain the distinction between legitimate and illegitimate threats in the context of contract law.

<p>Legitimate threats include actions like filing a claim against someone, while illegitimate threats involve actions like threatening harm to someone's family.</p> Signup and view all the answers

What are the three requirements for economic duress to be present in a contract?

<p>Illegitimate pressure, the pressure must be a significant cause inducing the innocent party to enter the contract, and there must be a lack of practical choice for the innocent party.</p> Signup and view all the answers

How does undue influence occur in contract law?

<p>Undue influence occurs when an individual persuades another's decisions due to the relationship between the two parties.</p> Signup and view all the answers

Explain the concept of subjective and objective tests in determining the sufficiency of a threat in contract law.

<p>Subjective test considers if the threat constrained the specific person, while the objective test evaluates if the threat would constrain a reasonable person.</p> Signup and view all the answers

What is the key difference between actual undue influence and presumed undue influence in contract law?

<p>Proof of actual influence is required in actual undue influence, while presumed undue influence does not require proof of improper influence.</p> Signup and view all the answers

Explain the concept of 'manifest disadvantage' in the context of contract law.

<p>For a transaction to be considered to have a 'manifest disadvantage,' it must be determined whether the transaction is ordinary and explainable in the context of the relationship between the parties or if there are concerns about its legitimacy due to suspicious nature.</p> Signup and view all the answers

What is required for a contract to be considered an 'unconscionable bargain' in common law?

<p>An 'unconscionable bargain' is a contract that no person in his senses, not under delusion, would make, and no fair and honest person would accept. It requires a special disadvantage to be present.</p> Signup and view all the answers

What distinguishes statutory illegality from illegality in performance in contract law?

<p>Statutory illegality refers to contracts directly against the law, while illegality in performance depends on how one party undertakes their obligations, even if the contract itself is legal.</p> Signup and view all the answers

Explain the concept of contracts being 'against public policy' and provide examples of such contracts.

<p>Contracts are considered against public policy if they breach society's shared values. Examples include agreements that restrict personal freedom or unduly restrict a party's economic freedom.</p> Signup and view all the answers

What is the potential consequence when both parties are guilty of entering an unlawful contract?

<p>No recovery of any money or property</p> Signup and view all the answers

Give an example of restraint of trade in an employment contract.

<p>An employee cannot start her own business or work for a competitor after her employment ends</p> Signup and view all the answers

What kind of clause in a contract could be considered void if it goes against societal morals?

<p>A clause that allows sexual business to be conducted on the premises</p> Signup and view all the answers

When is a waiver of any possible rights in the future considered invalid?

<p>When both parties are guilty of entering an illegal contract</p> Signup and view all the answers

In which jurisdictions is surrogacy forbidden by law?

<p>France and Spain</p> Signup and view all the answers

According to Kristen Warner, associate professor of race, media, and representation at Cornell University, nowadays, studios, audiences, and creatives consider the increase of diverse actors as progress. This type of representation is called __

<p>progress</p> Signup and view all the answers

What is the purpose of regulatory acts?

<p>To specify how legislation should be implemented with regard to highly technical aspects</p> Signup and view all the answers

What is the role of the Commission in implementing EU law?

<p>To propose legislation to the Parliament and Council</p> Signup and view all the answers

What is the primary responsibility of implementing EU law?

<p>EU countries</p> Signup and view all the answers

What is the purpose of implementing acts?

<p>To specify how EU law should be implemented in areas requiring technical expertise</p> Signup and view all the answers

Who can adopt delegated and implementing acts?

<p>Either the Commission or the Council of the EU</p> Signup and view all the answers

What is the difference between binding and non-binding EU acts?

<p>Binding acts specify how EU law should be implemented, while non-binding acts provide recommendations</p> Signup and view all the answers

What is the role of citizens and stakeholders in implementing EU law?

<p>To provide feedback on draft texts of implementing acts</p> Signup and view all the answers

What is the purpose of directives and regulations?

<p>To establish EU laws relating to specific areas</p> Signup and view all the answers

What is the difference between implementing acts and regulatory acts?

<p>Implementing acts specify how EU law should be implemented, while regulatory acts provide recommendations</p> Signup and view all the answers

Who is responsible for implementing EU law in areas controlled by EU countries?

<p>EU countries</p> Signup and view all the answers

Study Notes

Restraint of Trade

  • Restraint of trade is a condition in a contract that prevents a party from acting in a way that could be seen as competing with the other party at a later date.
  • Restraint of trade is often used in employment contracts where an employee is forbidden to work for a competitor after their employment ends.

Illegal Contracts

  • A future waiver of rights is considered invalid, as it is impossible to know what rights one might need to assert in the future.
  • An illegal contract occurs when both parties knowingly commit a crime.
  • A contract is considered voidable, meaning it can be set aside, if it is against the moral views of society or if it goes against current societal views.
  • A clause stating that the lessee cannot have children will be void in a contract as it goes against societal morals.
  • When both parties are equally guilty of an illegal contract, they cannot sue each other for damages.
  • In pari delicto means that both parties are equally at fault.
  • If a party is forced into an unlawful contract through duress, they can recover money or property.
  • A party can only recover money or property from an illegal contract if they have been unfairly induced into the contract (in pari delicto).

Surrogacy

  • France and Spain have outlawed surrogacy.
  • The UK and Netherlands allow commercial surrogacy arrangements.

Duress

  • Duress occurs when a party is forced into a contract by improper threats.
  • To vitiate consent in a contract, threats must be illegitimate and must be a reason for entering the contract.
  • Threats can be physical, economic or psychological.
  • Courts consider the severity of the threat, the nature of the threat, and the victim's vulnerability when assessing duress.
  • There are three main requirements for duress: a threat, a causal link between the threat and the contract, and the victim being deprived of a reasonable choice.
  • Threats are only considered illegitimate if they are not justified by law, legal right or a moral obligation.
  • Economic duress is present when there is a threat to a party's economic interests, the threat is illegitimate, and the threat leaves the party with no reasonable alternative.

Undue Influence

  • Undue influence occurs when one party takes advantage of their position of power over another to coerce them into entering a contract.
  • It is a form of unfair influence that vitiates consent, making the contract voidable.
  • Undue influence can be actual or presumed.
  • Actual undue influence requires proof that the dominant party actually exerted an undue influence on the weaker party.
  • Presumed undue influence occurs when a relationship exists between the parties that gives rise to an automatic presumption of undue influence.
  • The weaker party must prove that the contract is to their manifest disadvantage.
  • A contract is considered an unconscionable bargain when there is a significant disparity in bargaining power and the contract is substantially unfair.
  • Undue influence is a subjective test, meaning it relies on the individual circumstances of the case.
  • Objective test looks at the objective facts of the case.

Illegality in Contract Law

  • Contracts that are illegal are unenforceable.
  • Illegality can arise from statutory illegality or illegality in performance.
  • Statutory illegality occurs when a contract is made in violation of a statute or law.
  • Illegality in performance occurs when the performance of a contract violates a statute or law.
  • Contracts can be void for being against public policy.
  • Examples of contracts against public policy include contracts that restrict trade, contracts that promote immorality, and contracts that are against public safety.

Diverse Actors in Entertainment

  • Diverse representation is the increase of people from different backgrounds in entertainment, including but not limited to race, gender, and sexual orientation.

EU Law Implementation

  • Regulatory acts set out general rules to implement EU law.
  • The Commission is responsible for proposing implementing acts.
  • Implementing acts specify the technical details for implementing EU law.
  • Delegated and implementing acts can only be adopted by the Commission.
  • Directives are non-binding, while regulations are binding and directly applicable in all EU member states.
  • Citizens and stakeholders are involved in implementing EU law through public consultations.
  • Directives and regulations are secondary legislation which implement primary legislation.
  • Implementing acts detail the specific rules and procedures for putting EU law into practice.
  • EU member states are responsible for implementing EU law in areas under their control.

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Description

Learn about the concept of undue influence, including the differences between actual and presumed undue influence in contracts. Understand the burden of proof required for each type of influence.

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