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Vitiating Factors - Coggle Diagram
Vitiating Factors
Misrepresentation
A misrepresentation is an untrue statement of fact, which is one of the causes, which induces a contract
This means the contract is valid until the victim of the misrepresentation exercises his option to avoid the contract
Fraudulent misrepresentation involves one party knowingly making a statement that is false or made recklessly, not caring whether it is false or not.
Innocent misrepresentation is a statement, which the maker honestly and reasonably believes to be true.
Negligent misrepresentation is when a party makes a statement without any reasonable grounds for believing it to be true
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Mistake
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Some misconceptions, which
will render the contract, void:
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Mistake as to the identity of the subject matter. For example, X was selling item B, but Y was intending to buy item A, known as mutual or non-identical mistake
Mistake as to the possibility of performing the contract which unknown to both parties cannot be performed
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Duress & Undue Influence
Duress is a common law concept that occurs when physical violence or the threat of violence causes someone to make a contract. The effect is that the contract is voidable.
Undue Influence was developed by equity, where one party brings pressure on another in order for them to complete a contract. It is likely that the relationship may be based on trust, for example a solicitor, client, parent, and child.
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Vitiating factors have an impact on the effect of the contract and may render it void, voidable, valid but unenforceable