claim damages. Device Reason Who uses Prerequisites Effect Capacity Some persons not Party Status of incapacity Depending on nature capable of without of incapacity contracting capacity Contract void (mental Contract incapacity, voidable infants) Contract unenforceable Misrepresentation One party misled Party who Erroneous factual Contract rescinded other party was misled statement inducing Sometimes tort contract damages Mistake (one or) both parties Mistaken Usually common Contract void (usually) mistaken about party mistaken assumption Some law saying assumptions (or before k contract is voidable terms) Sometimes mistake about identity other’s Duress One party coerced Coerced Illegitimate threat Contract voidable by other to contract party (historically, void) Undue influence One party dominated Dominated Relationship of undue Contract voidable by other party influence leading to questionable contract Unconscionability Contracting Weaker One party taking unfair Contract voidable or circumstances unfair party advantage of position of subject to judicial and tantamount to other adjustment fraud Illegality Public policy One or both Formation or Contract void or disapproves of some parties, performance of contract unenforceable contractual depending prohibited by statute or situations on type of common law illegality Limitations of Must bring claim Either party, Limitation period has Obligations actions within statutory as a expired unenforceable in court period defence
claim damages. Device Reason Who uses Prerequisites Effect Capacity Some persons not capable of contracting Party without capacity (mental incapacity, infants) Status of incapacity Depending on nature of incapacity Contract void Contract voidable Contract unenforceable Misrepresentation One party misled other party Party who was misled Erroneous factual statement inducing contract Contract rescinded Sometimes tort damages Mistake (one or) both parties mistaken about assumptions (or terms) Mistaken party Usually common mistaken assumption before k Sometimes mistake about other’s identity Contract void (usually) Some law saying contract is voidable Duress One party coerced by other to contract Coerced party Illegitimate threat Contract voidable (historically, void) Undue influence One party dominated by other Dominated party Relationship of undue influence leading to questionable contract Contract voidable Unconscionability Contracting circumstances unfair and tantamount to fraud Weaker party One party taking unfair advantage of position of other Contract voidable or subject to judicial adjustment Illegality Public policy disapproves of some contractual situations One or both parties, depending on type of illegality Formation or performance of contract prohibited by statute or common law Contract void or unenforceable Limitations of actions Must bring claim within statutory period Either party, as a defence Limitation period has expired Obligations unenforceable in court