Invalidating factors of a contract
If you decide that Molly was under duress when she made the contract, you'll order that Mark can't enforce the contract. This means that Molly can refuse to sell, or she can go through with the transaction. In your courtroom, you sometimes see other types of cases that involve a lack of mutual assent. Undue influence is also a defense to a contract and is also a situation that affects mutual assent.Undue influence is taking advantage of another person, through a position of trust, in the formation of a contract.
Let's take a look at a couple of situations where mutual assent will be lacking. You know that one of the requirements of a valid, legal contract is that both of the parties freely entered into the contract.As the judge, you know that there are several requirements that must be met in order to form a legally binding agreement. Mutual assent is a meeting of the minds, or an agreement between the parties.Sometimes the parties' words or actions imply that they have an agreement, but there wasn't really mutual assent.Sometimes mutual assent can be affected by coercion or pressure to enter the contract.Duress and undue influence are situations that affect mutual assent and make a contract void or voidable.A contract can't be enforced against a person who was forced or coerced into entering the contract. Duress is wrongful pressure exerted upon a person in order to coerce that person into a contract that he or she ordinarily wouldn't enter.
Duress involves an intentional use of force or threat of force in order to induce the contract.
A void contract is invalid and can't be enforced by either party.
A voidable contract is binding on one of the parties, while the other party has the option to withdraw from the contract or to enforce it.
Plus, get practice tests, quizzes, and personalized coaching to help you succeed.
Free 5-day trial Contracts must be entered into freely by both of the parties and include mutual assent.
These contracts still involve an improper or wrongful threat.