LAWS1100 Study Guide - Final Guide: Undue Influence, Unconscionability, Specific Performance
Document Summary
Policy underpinnings to contract law: caveat emptor - let the buyer be aware, freedom of contract - free and voluntary consent. Fa(cid:272)to(cid:396)s that affe(cid:272)t ge(cid:374)ui(cid:374)e (cid:272)o(cid:374)t(cid:396)a(cid:272)tual (cid:272)o(cid:374)se(cid:374)t a(cid:396)e (cid:272)alled (cid:858)(cid:448)itiati(cid:374)g fa(cid:272)to(cid:396)s(cid:859). Lack of free and voluntary consent may arise from: misrepresentation, mistake, duress. Misrepresentation: a false statement of fact is made by one party to another. If other party was induced to enter into contract by misrepresentation, contract is voidable. Intended to induce and in fact does induce, the other party to enter into the contract: there are 3 types of misrepresentation fraudulent, innocent and negligent. See: derry v peek (1889: parties may rescind the contract and sue for damages. Innocent misrepresentation: the elements of innocent misrepresentation are, when the representor does not intend to deceive anyone, the misrepresentation is made unintentionally. See: oscar chess ltd v williams [1957: parties affected by innocent misrepresentation may rescind contract, but cannot sue for damages.
