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Invalidating Contracts (Vitiating Factors) pt 2 - Coggle Diagram
Invalidating Contracts (Vitiating Factors) pt 2
Mistakes
Common/bilateral mistake
Both parties make the same mistake
Mutual Mistake
The parties have different subjective understanding of their rights
It's not possible, on the basis on an objective interpretation of the terms of the contract, to determine which party is correct
Unilateral mistake
Parties have different subjective understandings of their rights
But one party's understanding of the contract is correct (consistent with the objective interpretation)
The contract will be voidable in equity if it would be contrary to conscience for the other party to take advantage of the mistake
Misrepresentation
An untrue statement of fact
If misrepresentation induces entry into a contract, the contract me be set aside..
Illegality
On Public policy grounds
Restraint of trade doctrine
A person seeking to enforce a restraint must demonstrate that the restraint is reasonable as between the parties
Even if the restrain is reasonable, a person will be released from the restraint if they are able to show that the restraint is unreasonable having regard to the public interest
On the basis that they are expressly or impliedly prohibited by statute
S45 Competition and Consumer Act 2010
Many statutes prohibit specified conduct without making any reference to contracts which involve such conduct
If they don't specify, ask the question did the legislature intend to prohibit such contracts?