BU233 Lecture Notes - Lecture 8: Undue Influence, Non Est Factum, Rescission
Document Summary
Recission setting aside of a contract because of some defect affecting its formation such as: mistake, misrepresentation, duress, undue influence. Or the discharge of the contract by the subsequent. Relief from a contract may be available when there has been a mistake, misrepresentation or if one party was pressured into agreeing thus applying the principles of undue influence and duress. Void if a contract is void, there is n contract and is ineffective from the beginning, no rights, title or ownership pass to anyone under a void contract and contracts based off a void contract also fail. A third party can only recover goods transferred to an innocent third party if the contract has been declared void, not voidable. Voidable the contract exists until set aside by a court; rights may pass to third parties before it is set aside.
