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Discuss the factors that can invalidate a contract - Essay Example

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Name Tutor Task Date Discuss the Factors that Can Invalidate a Contract Introduction A contract could be defined as an agreement presenting a legal responsibility upon involved parties. A contract normally occurs voluntarily between different parties with intentions of creating legal obligations between them…
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Discuss the factors that can invalidate a contract
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Download file to see previous pages The requirement for proof of contact elements becomes essential in litigating instances when a party breaches the contract. The legal process following contract breach ultimately results in remedy for damages incurred upon the wronged party. The action of contract breach ultimately results in invalidation of contractual elements. Numerous factors contribute towards the invalidation of contracts agreed upon by different parties, voluntarily (Koffman and MacDonald, 75-9). Factors contributing to invalidation of contracts There are different legal ways through which contracts could be set aside. These include a contract being declared void, and it never coming into existence. A contract could also become voidable when one party declares the contract as ineffective form their own individual determination. The contract could also become unenforceable or ineffective. Unenforceability refers to situations where neither party could get remedy form courts upon breach, and ineffectiveness refers to court decision terminating contracts between different parties. These elements could be contributed by the factors discussed below. Misrepresentation This refers to situations where some parties make false statements and presents false information which makes other parties agree into the contract terms. Misrepresentation results in remedies of rescission or damages depending on the occurrence of misrepresentation. Misrepresentation can occur through words or conduct of one party implying falsehood, though not all elements of speech and conduct constitute misrepresentation within the setting of contract law (Gordon v Selico, 5). Misrepresentation can take place under three different conditions which include: Stating a fact falsely Directing the false statement to a party of the contract The statement inducing suing party into agreeing contract terms following the statement. Misrepresentation, therefore, occurs when a party appears to falsely induce another party into a contract by providing false or partial information, resulting in another party agreeing into the contract. The wronged party, therefore, lacks sufficient information and agrees without proof of the involved facts. Opinions held by parties, however, do not constitute misrepresentation as these remain opinions and not factual information regarding contract terms. There are different types of misrepresentation based on their occurrence; Fraudulent misrepresentation: This misrepresentation could be characterised by parties making representation intended to deceive others, and knowing the representation being as false. Fraudulent misrepresentation could constitute litigation under tort law within different legal frameworks. Negligent misrepresentation at common law: This misrepresentation occurs when parties make representations without reasonable information regarding the truth of information. This misrepresentation seeks to provide a remedy for situations where collateral contract or fraud cannot be proved. This commonly occurs where individual claim to possess special skills for performing various tasks, but fail to delivery as implied. Negligent misrepresentation under statute law: This commonly refers to misrepresentation stated under various legal statutes and litigation occurs according to the statute provisions. The parties involved must prove the presence of falsehood within the statement provident by the representing ...Download file to see next pagesRead More
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