Fraud Defense

Fraudulent inducement renders a contract voidable; fraud in factum may render it void.

Representative cases

• Sarvis v. Vermont State Colleges 772 A.2d 494 · Supreme Court of Vermont
• Victor v. Todman 2024 V.I. 18 · Supreme Court of The Virgin Islands
• Rogolofoi v. Guerrero 2 N. Mar. I. 468 · Supreme Court of The Commonwealth of The Northern Mariana Islands

Related Defenses to Formation rules

• Capacity to ContractMinors, mentally incompetent persons, and intoxicated individuals may avoid contracts due to lack of capacity.
• Misrepresentation DefenseContracts induced by material misrepresentation are voidable when justifiably relied upon.
• Duress DefenseDuress exists when an improper threat leaves no reasonable alternative.
• Undue Influence DefenseUndue influence arises from unfair persuasion of a vulnerable party by someone in a dominating position.
• Mutual Mistake DefenseA contract is voidable when both parties are mistaken about a basic assumption materially affecting the exchange.
• Unilateral Mistake DefenseUnilateral mistake permits avoidance when the other party knew or caused the mistake.
• UnconscionabilityA court may refuse enforcement of unconscionable terms based on unfair surprise or oppressive results.
• Statute of Frauds CategoriesThe SOF applies to marriage, year-or-more, land, executors, goods ≥ $500, and suretyship.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.