Discuss the various defenses to the enforcement of a contrac

Discuss the various defenses to the enforcement of a contract that would cause the alleged contract to be VOIDABLE. Give a specific example of each type of defense and explain why you believe the example to represent when a contract would be voidable.

Solution

Contract defense: Capacity to contract

In order to be bound by a contrat a person must have the legal the legal ability to form a contract which is called capacity to contract. If a person is unable because of age or mental impairment to understand when she signs a contract then that person may lack capacity to contract and the contract would be voidable.

Contract defense: Undue influences, duress, Misrepresentation.

Coercion, threats, false statements or improper persuasion by one party to the contract can void the contract.

Contract defense: Unconscionability

When the terms of the contract are oppressive or when the bargaining process or resulting terms shock the conscience of the court, the courty may strike down the contract as unconscionable.

Contract Defense: Public Policy and Illegality

Insted of protecting the paries to a contract the defenses of illegality and violation of public policy seek to protect the public welfare and the integrity of the courts by refusing to enforce certain types of contracts.

Contract defense: Mistake

In order to cancel a contract for mistake borth parties must have made a mistake as to a basic assumption on which the contract was based and the mistake must have a material effect upon the agreed exchange,