An agreement that is caused by fraud, misrepresentation, and coercion is an MCQ – a Mistake, Duress, or Undue Influence. This type of agreement is not legally binding and can be challenged in a court of law.
Fraud occurs when one party intentionally deceives the other party to enter into an agreement. Misrepresentation, on the other hand, occurs when one party unintentionally provides false information that causes the other party to enter into an agreement. Coercion is the use of force or intimidation by one party to induce the other party to enter into an agreement.
In all of these instances, the agreement is entered into under false pretenses, and the consent of the party is not freely given. This means that the agreement is not legally enforceable, and the parties can seek to have it declared void.
In some cases, the parties may be able to rescind the agreement, which means that it is treated as if it never existed. In other cases, the party that was harmed by the MCQ may be entitled to damages to compensate them for any losses they suffered as a result of the agreement.
For example, if a car salesman intentionally told a customer that a car had never been in an accident to induce them to buy it, and it turns out that the car had in fact been in an accident, the customer could seek to have the agreement declared void due to fraud or misrepresentation. Alternatively, they could seek damages to compensate them for any repairs or other costs associated with the accident.
Overall, it is important to be aware of the potential for MCQs in any agreement you enter into. If you suspect that you have been the victim of fraud, misrepresentation, or coercion, you should seek legal advice to determine your options for challenging the agreement.