Mistake
When a party or parties, at the time of entering into a contract, erroneously believes that certain information is true, a mistake is deemed to have occurred. Therefore, any form of commitment to execute the terms of a contract under such circumstances can be annulled. In other words, parties committed to executing the terms of a contract are not legally bound to do so if a mistake has occurred. In cases where a mistake occurs, the agreement therein can be found void ab initio and be voided. However, based on the circumstances surrounding the occurrence of the mistake, courts may provide an equitable remedy.
Undue influence
When a person in a position of power takes that advantage to influence another person, presumably lacking the same status, undue influence is said to have occurred as an equitable doctrine. Under such circumstances, the powerful party can vitiate the weaker person’s consent, and this occurrence can invalidate a contract. Mostly, undue influence works to the benefit of the stronger party and the detriment of the weaker side. However, some cases (doctor-patient or parent-child relationships) are prone to the risk of undue influence, but the law provides guidelines on how such occurrences should be addressed. The stronger parties are required to prove that they did not use their position to take advantage of the weaker side.
Duress
In contractual law, duress is deemed to have occurred when threats or violence are used to intimidate a party or parties when entering into a contract. This doctrine is taken seriously in contractual law, which explains why a contract may be voided even if duress was not the main reason why a person entered into a contract. Duress can take different forms, including physical or mental compulsion, but it should be in a position to deprive the other party of freedom or free will to make a choice. Where physical coercion is involved (for instance, agreements made at gunpoint), such contracts are void. However, some forms of duress render a contract voidable as opposed to being void; for example, contracts made by threatening a party’s family or use of blackmail. Under such circumstances, the affected party can decide whether to enforce the contract.