Quiz 10: Defenses to Contract Enforceability

Business

A cause of action for misrepresentation can be brought against the accountant. Misrepresentation happens or occurs through omission or a failure to disclose material facts. An accountant can also be found liable for not using the skill and competence required by his or her business or profession. Suits brought by clients are typically based on negligence or fraud. Remedies for breach of contract include specific performance; general damages and consequential damages.

The situations in which the genuineness of assent to a contract's terms be lacking may arise due to fraudulent misrepresentation, duress, mistake, and undue influence. Those individuals who enter with such contracts and are lacking genuine assent and contractual capacity are not void but voidable.

A contract requires some features to be termed as valid one. These requirements are an agreement, a proper consideration, voluntary consent, contractual capacities of the parties to contract and legal objective. If even one of these is missing a contract cannot be said be valid. Voluntary consent arises when any of or both the parties genuinely agrees to the terms of the agreement, if otherwise the contract becomes unenforceable. Voluntary consent might be lacking in any of the following situations: • If the case is of mistake. • If the case is of fraudulent misrepresentation. • If the case is of undue influence. • If the case is of duress. Thus, aforementioned are the cases where voluntary consent may lack.

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