BSL 212 Chapter 11

What is duress?

Duress refers to a situation where someone is forced to act against their will or better judgment, often through threats or coercion. In legal contexts, it can invalidate contracts or agreements made under such pressure.

What are the rules for duress?

Physical compulsion is void. Improper threats are voidableand can include threats of harm, financial loss, or other forms of pressure. The threatened party may seek to rescind the contract if it was entered into under duress.

What is undue influence?

Undue influence occurs when one party uses their position of power over another to persuade them to enter into a contract or agreement, compromising the other party's free will. Voidable

What is fraud in the execution?

Fraud in the execution refers to a situation where a party is deceived about the nature of a document they are signing, leading to a misunderstanding of the contract's true content. This type of fraud can render the contract void.

What is fraud in the inducement?

Fraud in the inducement occurs when one party intentionally provides false information or misrepresentations to persuade another party to enter into a contract. This can lead to the contract being voidable at the option of the deceived party.

What is nonfraudulent misrepresentation?

Nonfraudulent misrepresentation is an unintentional false statement made by one party during the negotiation process, which induces the other party to enter into a contract. Unlike fraudulent misrepresentation, the party making the misrepresentation believes the statement to be true.

What is negligent misrepresentation?

Negligent misrepresentation occurs when a party makes a false statement without exercising reasonable due care to verify its truthfulness, leading another party to reasonably rely on that information in forming a contract.

What is innocent misrepresentation?

Innocent misrepresentation is a false statement made by one party who believes it to be true and has no intention to deceive. This can result in the misled party having the option to rescind the contract.

What is a mistake?

A belief that is not in accord with the facts.