Distinguish between : a) Coercion and undue influence b) Fraud and Misrepresentation

Distinguishing Between Coercion and Undue Influence

1. Coercion:

Definition: Coercion is the use of force or threats to compel someone to do something against their will or better judgment.

Characteristics of Coercion:

• Involves physical or psychological pressure.
• The threat can be of harm to the person or their property.
• The coerced party has no reasonable alternative but to comply.

Legal Consequences of Coercion:

• Contracts entered into under coercion are voidable at the option of the coerced party.
• The coerced party can choose to either affirm or reject the contract once the coercion is removed.

2. Undue Influence:

Definition: Undue influence occurs when one party takes advantage of a position of power or trust to exploit the other party and induce them to enter into a contract.

Characteristics of Undue Influence:

• Involves a relationship of trust or confidence between the parties.
• The dominant party uses their influence to persuade the other party.
• The weaker party is unable to resist the influence exerted upon them.

Legal Consequences of Undue Influence:

• Contracts entered into under undue influence are voidable at the option of the influenced party.
• The influenced party can choose to either affirm or reject the contract once the undue influence is proved.

Distinguishing Factors Between Coercion and Undue Influence:

• Nature of Influence: Coercion involves force or threats, while undue influence involves the abuse of a position of trust or power.
• Type of Pressure: Coercion involves external pressure, while undue influence involves internal pressure.
• Remedy: Contracts entered into under coercion are voidable, while contracts entered into under undue influence are voidable but can also be set aside by the court.

Distinguishing Between Fraud and Misrepresentation

1. Fraud:

Definition: Fraud is a deliberate deception intended to secure an unfair or unlawful gain.

Characteristics of Fraud:

• Involves a false representation of fact.
• The representation is made knowingly, without belief in its truth, or recklessly.
• The representation is made with the intent to deceive and induce the other party to act upon it.

Legal Consequences of Fraud:

• Contracts entered into under fraud are voidable at the option of the defrauded party.
• The defrauded party can choose to either affirm or reject the contract once the fraud is discovered.

2. Misrepresentation:

Definition: Misrepresentation is a false statement of fact made innocently or negligently, without the intent to deceive.

Characteristics of Misrepresentation:

• Involves a false statement of fact.
• The false statement is made innocently or negligently.
• The false statement induces the other party to enter into the contract.

Legal Consequences of Misrepresentation:

• Contracts entered into under misrepresentation are voidable at the option of the misled party.
• The misled party can choose to either affirm or reject the contract once the misrepresentation is discovered.

Distinguishing Factors Between Fraud and Misrepresentation:

• Intent: Fraud involves deliberate deception, while misrepresentation involves innocent or negligent false statements.
• Remedy: Contracts entered into under fraud are voidable, while contracts entered into under misrepresentation are voidable but can also be set aside by the court.

In conclusion, coercion and undue influence involve different types of pressure exerted on a party to enter into a contract, while fraud and misrepresentation involve false statements of fact. Understanding these distinctions is crucial in determining the validity and enforceability of a contract.