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Vitiating Factors - Coggle Diagram
Vitiating Factors
Misrepresentation
Where a defendant makes a false statement of material fact which induced the claimant into entering the contract.
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Of Material Fact
Must be a false statement about a fact, not an opinion (Bisset v Wilkinson)
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Remedies
Recession
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There are however limits on whether this can happen, these are:
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Economic Duress
This is when a person enters an agreement as a result of threats, there are 5 conditions that must be met:
- The illegitimate pressure induced the party to enter the contract - it was a significant factor. (Barton v Armstrong)
- The claimant had no choice but to enter the contract. (The Universe Sentinel)
- The pressure was illegitimate - such as threatening to breach the contract. Lawful pressure/threats will not amount to economic duress. (Atlantas Express v Kafco)
- The claimant must protest at the time or shortly after the contract was made. (North Ocean Shipping v Hyundai Construction)
- Pressure was exerted on the contracting party. (The Atlantic Baron)