LAW 122 Lecture Notes - Lecture 10: Undue Influence, Fiduciary, Unconscionability
2 Feb 2017
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Definition: misrepresentation is a false statement of an existing fact that causes recipient to enter into a contract. A statement of an existing fact : (cid:884). May be actionable if it induced a contract: rule: generally, contract will not be enforced. Incapacity to contract: there can be a problem with incapacity, capacity: the legal power to give consent, there are groups with limited power to give consent (or no capacity) Examples: minors, mentally incapacitated persons, intoxicated persons, corporations, associations, indian bands and aboriginal persons, public authorities. Contract may be voidable due to unfairness: 1. Duress: illegitimate threat of harm: contract voidable at victim"s option. Duress of person: threat of physical harm to party or loved one. Duress of goods: threat to detain, damage, or destroy goods. Economic duress: threat of financial harm; arises when a person enters into a contractual arrangement after being threatened with financial harm, undue influence.
