BLAW 3201 Chapter Notes - Chapter 11: Rescission, Scienter, Uberrima Fides
Document Summary
Law demands that agreements be voluntary, knowing, legal and entered into by parties with legal capacity otherwise the agreement = voidable, void or unenforceable. Defenses to contract inlcude situation in which the manifested consent was not given knowingly and voluntarily duress, undue influence, fraud, non-fraudulent misrepresentation, and mistake. Unlawful constraint exercised upon a person, whereby he is forced to do some act against his will. Two basic types: physical compulsion and improper threats. Physical compulsion: when on party compels another to agree to a contract through. Improper threats: using economic and social coercion, leaving the victim with no reasonable alternative to agreeing with the more powerful party threat may be explicit or inferred from words or conduct. A subjective test is used to determine whether the threat actually induced assent on the part of the person claiming to be the victim of duress makes the contract voidable at the option of the coerced party.
