Principles of Business Law Semester 2 2024 Past Paper PDF

Principles of Business Law Semester 2 2024 TOPIC 8: VITIATING FACTORS OVERVIEW Contract law topics: overview (TEST TWO and Final exam) Topic 5: Topic 6: Topic 4: Identifying and Contractual Formation of...

Principles of Business Law Semester 2 2024 TOPIC 8: VITIATING FACTORS OVERVIEW Contract law topics: overview (TEST TWO and Final exam) Topic 5: Topic 6: Topic 4: Identifying and Contractual Formation of Interpreting Performance and Contracts Contractual Terms Breach Topic 8: Topic 7: Remedies Invalidating for Breach of Contracts Contract (vitiating factors) Overview: Vitiating factors Video 8.1 1. Invalidating a transaction 2. When might relief be refused? Videos 8.2 – 8.7 3. Duress (video 8.2) 4. Undue influence (video 8.3) 5. Unconscionable dealing (video 8.4) 7. Mistake (video 8.5) 8. Misrepresentation (video 8.6) 9. Illegality (video 8.7) Video 8.8 10. Case studies (video 8.8 – three separate videos) Invalidating a transaction  The law does not allow certain types of conduct, e.g. behaviour that is contrary to good conscience.  An agreement can satisfy the formation requirements (capacity, agreement, certainty, intention and consideration/deed) even if such behaviour took place during the formation process.  If a transaction (such as a contract) is entered into in such circumstances, the innocent party may be able to escape her obligations.  The contract may be rescinded. The right to bring the contract to an end can be lost: Affirmation  Delay in exercising a right to rescind (cancel) the contract can result in the right being lost.  Example  A sells goods to B.  A engages in unconscionable dealing during the negotiations.  Once the circumstances that placed B at a special disadvantage have passed, B decides to continue with the contract.  B had a right to bring the contract to an end but chose to affirm the contract.  As a result, B loses her right to have the contract set aside because of unconscionable dealing. Affirmation: North Ocean Shipping v Hyundai Constructions FPBCL p 395 We will see that:  H’s threat not to perform its contractual duties amounted to duress;  The duress caused entry into the contract. Why then was the contract not set aside?  NOS did not exercise the right to rescind the contract within a reasonable time – it thus affirmed the contract.