Invalidating factors of a 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.Though rare, this is the most serious form of duress in contract law. Other types of duress make a contract voidable, rather than void.For example, this type of duress includes a contract made at gunpoint or during a battery. In other words, the party that was forced into the contract can choose whether or not to enforce the contract.Undue influence always involves a relationship between the two parties, with one party in a superior position over the other.Undue influence doesn't involve a direct threat, like duress does.Some examples include: For example, let's say that Mark is Molly's boss. In your courtroom, you see a lot of contested contracts.
There are many situations in which a trusted person can exercise control over another person's free will or exercise of free choice. Mark doesn't threaten Molly, but she feels like she has to do what he asks. She felt like she had no choice but to agree to sell her stock to Mark.
It can be either physical or mental coercion, but the coercion must be to the extent that it deprives the other person of free will or freedom of choice.
This means that the person is left with no reasonable alternative other than to enter the 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.