Please enable JavaScript.
Coggle requires JavaScript to display documents.
Vititating Factors - Coggle Diagram
Vititating Factors
Undue Influence
Consent not obtained by free will
Class 1: Actual undue influence
Burden of proof on victim
No need to establish special relationship
No need to establish that resulting transaction is manifestly unfair to victim
Class 2: Presumed undue influence
Class 2A: Presumption of relationship of trust and confidence
Rebutting the presumption
Independent legal advice
Knowledge
Class 2B: No automatic presumption of relationship of trust and confidence
Need to prove
1: relationship of trust and confidence exists
2: Transaction is manifestly disadvantageous
Burden of proof then shifts to defendant to show that victim exercised independent will when entering the contract
Doctrine of infection
Legal Effects
Voidable
Restitution
Objective is to restore parties to their original position
Duress
Exceptional cases
3 elements
Illegitimacy
Nature of Demand
Nature of Pressure (Threat)
Causation
"But for" Test
Burden of proof for causation is on party claiming economic duress
Pressure amounting to Compulsion
Whether victim had any alternatives
Whether victim received independent legal advice
Whether victim protested
Whether victim took steps to avoid contract
Legal Effects
Contract is voidable
Right to rescission
Illegality
Legal Effects
Loss lies where it falls
Courts will not assist a person whose action is based on a contract that is tainted by illegality
Exceptions
Parties not in pari delicto
Timely repudiation or repentance
Independent cause of action
ROT clause
Non solicitation clause
General rule: Void
May be necessary to protect legitimate interest
Public policy considerations
It is in the interest of society to encourage competition
Covenants voluntarily entered into should be upheld
Exception: Valid on 2 conditions
Legitimate interest of relying party
Reasonable to parties and public
Test of validity
Legitimate proprietary interest
Factors relevant in ascertaining "reasonableness"
2 more items...
Because it is contrary to public policy
Categories of ROT clause
Sale of business
Contracts of employment
Solus agreement
Severance
Blue pencil test
Burden of proof on party seeking to rely on ROT
Non- compete clause
Unconscionability
Requirements
Weakness exploited
Exploitation of infirmity
Serious Disadvantage
Transaction overreaching and oppressive
Incapacity
Lack of capacity affects enforceability and makes contracts void or voidable
Minors
Rule: Contracts entered into by a minor is not enforceable
Exceptions
Beneficial to a minor
Must be necessaries at law
Minors is in fact in need of them
Voidable by a minor
Ratified by a minor
Mental incapacity
Mental patients
Those under the influence of drink
Valid unless it can be shown that
Person was incapable of understanding what they were doing
Other party knew or ought reasonably to have known of the disability
Corporations