Law of Contract: Genuine Consent

2552 WordsApr 16, 201111 Pages
Lecture 8 Law of Contract: Genuine Consent INTRODUCTION Although the contract may have the essentials of a valid offer, acceptance, legal intentions and consideration, its validity or enforceability may be affected by a number of factors. The agreement may be wanting in genuine consent between the parties. That is, although the parties may appear to have reached an agreement, it may not have been genuinely achieved because of misconduct, pressure, unfairness, or fear by those involved. As separate issues to genuine consent, the law allows minors and others lacking legal capacity to be relieved of contractual obligations in certain circumstances; additionally, the validity of the contract is affected if the subject matter…show more content…
no disclosure of the fact that a true statement has subsequently become false in the time between the making of the statement and the making of the contract. the contract is one of utmost good faith (for example, a contract of insurance) when full disclosure must be made. there is a fiduciary relationship (one that involves trust and confidence, such as that of a partner in a partnership, of an agent to a principal, and of a director and company) 2) must be of fact not of opinion The statement must of a factual nature, rather than belief or opinion. For example, consider a statement which falsifies the details of past profits. Profits made in the past are of a factual nature as they can be objectively determined. Hence, the statement is one of fact, albeit false. Contrast this with an opinion or prediction of a future event, such as an estimate of future profits 3) must be relied upon in entering into the contract The statement must be relied upon: that is, it was not only intended to induce but it did in fact induce the other party to enter the contract. Hence, there must be an intention by the person making the statement for the other person to rely or act on the statement. Further, the statement must be one of the reasons inducing the other party to enter the contract. A statement will likely have no effect if the other party never knew of its existence, or did
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