Contract - grounds for impeachment

grounds for impeachment

mistake

misrepresentation

undue influence

duress

mistake

types of mistakes

mistakes of fact - misunderstand an essential fact related to the contract

types of mistakes of fact

mutual mistake - both parties are mistaken

unilateral mistake - one person is mistaken

non est factum - misunderstood nature of contract due to infirmity and was not carelessness

mistakes of law - misunderstands or is ignorant of the law

rectification - typo error that is obvious in court

misrepresentation

types of misrepresentation

innocent

negligent

fraudulent

by non-disclosure

innocent

honestly believed it was true, not intention to deceive

criteria:

• material (The false statement influenced your decision to enter the contract)

• fact (The statement was about a fact, not an opinion)

• false (The statement was untrue.)

• honest mistake

remedy: recission - restore parties to original state

negligent

The person was careless and didn’t check if the statement was true.

criteria:

• material (The false statement influenced your decision to enter the contract)

• fact (The statement was about a fact, not an opinion)

• false (The statement was untrue)

• breached the standard of care

remedy: rescission or damages

fraudulent

criteria:

• material (The false statement influenced your decision to enter the contract)

• fact (The statement was about a fact, not an opinion)

• false (The statement was untrue)

• intention to deceive or reckless

remedy: rescission or damages

by non-disclosure

One party chooses not to share important facts when they have a duty to disclose them.

utmost good faith - relationship leads to trust causing duty to inform party of facts

examples

• insurance - doesn’t tell that they have medical issues

• mortgage - bank hides hidden fees

• partner - partner doesn’t tell u they’re in debt until after coming together

undue influence

someone has power or domination ov er you because you trust them and use it to their advantage

factors:

• degree of domination

• extent of unfairness of bargain

IDA - independent legal advice

can be used if professional uses their intelligence to give bad advice

Duress

actual or threatened violence to coerce another party to enter into a contract