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Part II Grounds, 9 Third Party Wrongdoing

Dominic O’Sullivan

From: The Law of Rescission (3rd Edition)

Dominic O'Sullivan KC, Steven Elliott KC, Rafal Zakrzewski

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 21 May 2024

Subject(s):
Third parties — Damages and contract — Illegality and contract — Performance of contract — Termination/unwinding of contract — Validity of contract

This chapter looks into the wrongdoings of third parties, considering situations where a transaction would be voidable because a party’s consent was vitiated by some factor that a third party had been responsible for. It also expounds on the basic rule precluding rescission of contracts. The O’Brien principle primarily applies to surety transactions wherein the surety and debtor conduct a non-commercial relationship and the transaction does not advantage the surety. The chapter then lists examples of non-commercial relationships such as marriage. Moreover, it explains how gifts and other gratuitous dispositions achieved through a third party’s misconduct may be set aside without proof of knowledge or constructive knowledge.

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