Vitiating Elements of Contract Clause Samples

Vitiating Elements of Contract. Agreements to the terms of a contract must be done freely where both parties are aware of the consequences of non-performance of such terms. There should not be any use of force or anything that will render the contract defective; if there is an element which may spoil or make such contract defective, such element is known as a vitiating element. Examples that will be considered here include mistake, misrepresentation, duress, undue influence and illegality. The nature of the vitiating element determines the kind of defect the contract may have which can lead to the contract not being enforced at all, or enforced in certain ways or there may be no contract at all. The nature of the defects must be explained in order to determine the effect of the vitiating elements before a further consideration is given to the elements themselves. These contracts do not hold any rights and obligations to the parties. Even though these contracts exist, none of the parties can sue or claim damages. Examples of these contracts are contracts that should be specified in writing or evidenced in writing; anything contrary to this provision in law are binding between the parties but neither of them can sue for breach in absence of written evidence. Any property, goods, money or valuables transferred in the course of the contract are validly transferred and cannot be reclaimed, nonetheless, the courts will not give effect to the contract if one of the parties fail to abide with the terms. These are contracts generally recognised in law and even given effect but such effect is subject to certain conditions. There are provisions in law for one of the parties to such contracts to withdraw from them if he wants to. Examples are contracts entered into by minors or such other contractual persons affected by lack of capacity like illiterates, drunks, or insane persons. Contracts vitiated by misrepresentation, undue influence and duress are under this category. Contracts under this category do not have any legal effect. The parties will not be given any effect by the courts to their agreements as they have only attempted to contract. The effect of mistake as a vitiating element is to make a contract void; that is, destitute of all legal rights. The difference between void and voidable contract can be better explained when third party rights are considered. In a sale of goods, if the agreement is that the buyer does not become the owner of the goods, and he cannot sell them to anyone else,...