Please enable JavaScript.
Coggle requires JavaScript to display documents.
Vitiating Factors, A false statement: Spice Girls v Aprilia World Service…
Vitiating Factors
-
Economic Duress: It is an essential characteristic of contract law that the parties enter into the agreement voluntarily. Therefore, a party who has been coerced into entering into a contract may be able to avoid the obligations under the contract by relying on economic duress.
The Privy Council identified 4 factors to consider in assessing whether economic duress was present:
-
-
-
After entering into the contract, did they take steps to avoid it
Any contract where a party is forced into it should not be valid. ( Alcard v Skinner 1882)
A contract signed under duress could include threats, e.g. blackmail or violence. In Barton v Armstrong [1976] death threats were carried out.
-
Negligent Misrepresentation: Is where the representor has been careless but the representee must suffer a loss to make a claim.Where the courts do find a negligent misrepresentation the claimant (representee) can seek damages. East V Maurer 1991
Innocent Misrepresentation: when the representor genuinely believes the statement to be true and is not at fault. in Hedley Byrne and legislation with the MRA 1967 the term “innocent” may be used in relation to a statement made by a person who has reasonable grounds for believing it is true
Misrepresentation: a false statement of material fact made by a party to the contract that induces the other party to enter the contract.
Representation: Statements made before, or at the time of, the contract are called representations.
Misrepresentation in Consumer Contracts:Section 12 of the Consumer Rights Act 2015 says it is misleading if a trader:
- Omits information that a consumer needs to make an informed decision
- Hides information or presents it in an ambiguous manner
-
The concept of economic duress was developed in The Atlantic Baron (1979),