Test yourself

Fill in the missing prepositions.

The following elements can invalidate a contract:

1.  Misrepresentation
Misrepresentation means a false statement of fact made by one party to another party and has the effect of persuading that party (1 p.) the contract. For example, (1 p.) certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation. A finding of misrepresentation allows (1 p.) a remedy of rescission and sometimes damages depending on the type of misrepresentation.

2.  Mistake
A mistake is an incorrect understanding by one or more parties (1 p.) a contract and may be used as grounds to invalidate the agreement.

3.  Duress and undue influence
Duress is the use of threat, force or false imprisonment to force a person to do something (1 p.) their wishes or interests. An innocent party wishing to set aside a contract (1 p.) duress to the person need only to prove that the threat was made and that it was a reason for entry (1 p.) the contract. Blackmail or extortion are classic examples of duress.
Undue influence involves one person taking advantage of a position of power (1 p.) another person. It is where free will to bargain is not possible. It may include insinuation, flattery, trickery, deception.