Part A-Contract law Part B- Case study (letter)

Part A-Contract law Part B- (letter) - Case Study Example As a result, they did not expect the consumer to take them seriously. A misrepresentation, on the other hand, refers to a false statement of fact that a party makes to another party to influence them into entering a contract, even though the statement is not part of the contract. In effect, this makes the contract voidable and the innocent party could repudiate the contract, as well as claim damages (James, 2014: p22). Where a person making the statement knew the real facts and it can be proved, they could not have held their views reasonably as a result, their opinions are taken as statement of fact. In order for a contract to be valid, both parties must make it freely and there should be mutual assent. However, it is possible that pressure to enter into the contract or coercion could affect mutual assent. Undue influence and duress are situations that impact on mutual assent, rendering contracts voidable or void. Duress refers to the exertion of wrongful pressure on a party to coerce them into making a contract that they would not ordinarily enter. It involves threatening to use force or using force intentionally to induce the party to assent to the contract (Carter, 2013: p32). Whether the coercion is mental or physical, it must be to an extent to which the other party does not have freedom of choice or free will, leaving them no reasonable alternative than to assent to the contract. On the other hand, undue influence refers to taking advantage of the other party during the formation of contracts. In this case, the two parties have a relationship, for example, one is superior to the other. Unlike duress that involves the use of direct threats; undue influence involves the use of excessive pressure by a dominant party for the subordinate to assent to the contract, although persuasion alone does not constitute undue influence (Carter, 2013: p33). As a result, the