Flashcards: Vitiating Factors in Contract Law — 20 cards

Vitiating Factors — definition?

Elements that undermine contract validity.

Mistake — role?

Can render contracts void or voidable.

Common Mistake — type?

Shared erroneous belief about vital fact.

Illegality — effect?

Makes contract unenforceable or void.

Guarantee — purpose?

Promise to pay if debtor defaults.

Indemnity — purpose?

Compensates for loss or damage.

Misrepresentation — effect?

Can lead to rescission or damages.

Effect of mistake?

Can void or voidable if fundamental.

Illegality under statute?

Violates law, usually void.

Illegality at common law?

Contrary to public policy, void.

Guarantees vs Indemnities — difference?

Guarantee is secondary; indemnity is primary.

Unilateral mistake — effect?

Usually does not void contract.

Mistake as to subject matter?

Can make contract void if fundamental.

Illegality — exceptions?

Enforceable if not central or public policy favors.

Guarantee — legal effect?

Liability arises only on default.

Indemnity — legal effect?

Liability arises immediately, regardless of default.

Mistake — types?

Common, unilateral, as to quality, subject matter, cross-purpose.

Misrepresentation — types?

Fraudulent, negligent, innocent.

Illegality — common law?

Involves illegal acts or public policy.

Guarantee vs Indemnity — scope?

Guarantee covers specific debt; indemnity covers broader losses.