Vitiating Factors in Contract Law

The four types are mistake, misrepresentation, duress, and undue influence.

A mistake in contract law must be a mistake of fact, not a mistake about the law.

Vitiating factors remove consensus and render the parties' minds as having not met.

<p>Duress or coercion occurs when one party is forced into a contract against their will.</p> Signup and view all the answers

<p>Undue influence occurs when one party uses their position of power to unfairly persuade another party.</p> Signup and view all the answers

<p>Misrepresentation involves providing false information that induces another party to enter a contract.</p> Signup and view all the answers

<p>The distinction is significant as only a mistake of fact can render a contract voidable, not a mistake of law.</p> Signup and view all the answers

<p>The High Court determined that if one party promises the existence of subject matter in a contract that does not exist, they must take responsibility, making the Commonwealth liable to pay McRae.</p> Signup and view all the answers

<p>Duress and coercion can invalidate a contract by forcing a party to enter against their will.</p> Signup and view all the answers

<p>The McRae case illustrates that vitiating factors like misrepresentation can lead to unforeseen liabilities, even in mistaken agreements.</p> Signup and view all the answers

<p>The case implies that the Commonwealth Government is liable for failing to deliver on its promises concerning the existence of the ships.</p> Signup and view all the answers

<p>A common mistake refers to a situation where both parties believe something to be true, such as the existence of ships, but are mistaken.</p> Signup and view all the answers

<p>It is important because it establishes that a party can be held accountable despite both parties being mistaken about a contract's subject matter.</p> Signup and view all the answers

<p>The three types are common or shared mistake, mutual mistake, and unilateral mistake.</p> Signup and view all the answers

<p>It is considered a mistake of law, and there is a presumption that everyone knows the law.</p> Signup and view all the answers

<p>Unlike the general rule where a mutual mistake renders the contract void, McRae's case establishes liability for the party who made a promise about non-existent goods.</p> Signup and view all the answers

<p>Promises play a pivotal role as they can create liability even when a mutual mistake about the subject matter exists.</p> Signup and view all the answers

<p>A unilateral mistake impacts one party's understanding, potentially voiding the agreement if it is fundamental.</p> Signup and view all the answers

<p>A mutual mistake involves both parties being mistaken about different aspects of the contract.</p> Signup and view all the answers

<p>It occurs when both parties make the same fundamental mistake about a contract.</p> Signup and view all the answers

<p>Misrepresentation can render a contract voidable if one party has been misled about a key fact.</p> Signup and view all the answers

<p>A mistake about the quality or value of the subject matter does not render the contract void.</p> Signup and view all the answers

<p>It represents the mutual agreement and intent of both parties to enter into a contract.</p> Signup and view all the answers