Vitiating Factors

Vitiating factors have an impact on the effect of the contract and may render it void, voidable, valid but unenforceable

Factors are

1) Mistake

2) Misrepresentation

3) Duress and undue influence

4) Illegality and contrary to public polic

Mistake

General rule about the quality or the characteristics of the goods do not invalidate the contract

Some misconceptions, which
will render the contract, void:

Mistake as to the document that is being signed

Mistake as to the identity of the other party

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

Mistake as to the existence of the subject matter which unknown to both the parties does not exist

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

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.

Illegality & Contrary to Public Policy

Illegality

The courts will not enforce contracts, which are prohibited by statute, or contracts to commit crimes or civil wrongs.

Contracts Contrary
to public Policy

These contracts are not prohibited by statute nor are they illegal, but they cannot be enforced because they are contrary to public policy