One cannot induce coerce or misrepresent another person into a contract Duress when instead of acting through personal choicewilldesire a person acts through fear of personal suffering Example If you dont sign this contract I will kill you ID: 545417
Download Presentation The PPT/PDF document "Inducements and Coercion" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Inducements and CoercionSlide2
One cannot induce, coerce or misrepresent another person into a contract
Duress = when instead of acting through personal choice/will/desire, a person acts through fear of personal sufferingExample: If you don’t sign this contract, I will kill youMisrepresentationInnocent misrepresentation = untrue statement that is honestly believed to be true
Inducements and CoercionSlide3
Fraudulent misrepresentation = untrue statement that is made with knowledge that it is false. It has 3 elements:
Knowledge that statement is falseFalse statement is made to induce party into contractInnocent party must act on the misrepresentationNegligent misrepresentation = statement found to be untrue
made by person who is in position of trust that is relied on by another person
For instance, a salesperson makes a statement and a buyer relies on it and suffers from itNegligence is the most common tort
Inducements and CoercionSlide4
Common mistake = when both parties to the contract know and accept the intention of one another
For instance, if the buyer and seller both believe the property includes right of way to the seashore when nothing actually supports this belief. This error will not create an easement and is viewed by the law as a common mistake between the two partiesMutual mistakes = when both parties are mistaken about the same material factFor instance, a seller owns two lakes on opposite sides of Lake Ontario. The seller believes he is selling the property on the north shore, while the buyer believes he is buying the property on the south shore. They are agreeing based on a mutual mistakeInducements and CoercionSlide5
Unilateral mistake = when only one party makes a mistake and the other party knows it
For instance, if you think you are entering into a contract with Jen but you are actually entering into a contract with Emily who is using Jen’s identity to misrepresent who she is. It is your mistake that you are entering into a contract with Jen when you are entering into a contract with Emily, and Emily knows about this mistakeInducements and CoercionSlide6
If a contract is missing an important element, it may be void or voidable
Void = if a fundamental aspect is missingThe mistake must go to the heart of the contractVoid contracts are a nullity at law and have no effect or forceAs far as the law goes, such a contract never existedNo party can enforce it or have obligation under itInducements and CoercionSlide7
Voidable = if the mistake is not fundamental
The mistake does not go to the heart of the contractContract is originally valid but capable of being rejected by party who is offended at a later time Voidable contracts are binding and valid until they are rendered voidIt is the choice of the offended party to uphold or avoid the contractInducements and Coercion