Analyze the vitiating factors

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Reference no: EM133835024

Daw Lin Sandar, a successful entrepreneur in the technology sector, is approached by Victor, an international investor who has expressed interest in acquiring her company. After a series of negotiations, Daw Lin Sandar agrees to sell 60% of her company to Victor for $30 million, but the contract also includes a clause that restricts Daw Lin Sandar from starting or investing in any similar tech business for the next 10 years.

In the weeks leading up to the signing, Daw Lin Sandar is under significant pressure from a pending IPO that could either make or break her financial status. Victor knows this and uses the imminent deadline to convince Daw Lin Sandar that this is the best deal she'll get, pushing her to sign the contract hastily. Furthermore, Victor's team drafts the agreement in a highly complex legal language, which Daw Lin Sandar, despite her background in business, finds difficult to fully comprehend without consulting an external lawyer. However, Daw Lin Sandar signs the contract under the pressure of time, believing it to be a fair deal.

After the deal is closed, Daw Lin Sandar discovers that some key aspects of the financial terms were not disclosed to her, including the fact that Victor plans to liquidate several assets of the company shortly after the acquisition, which could cause the company's value to plummet. Daw Lin Sandar also learns that Victor had misrepresented his actual financial backing to her.

Question:

Analyze the vitiating factors that could affect the genuineness of Daw Lin Sandar's consent to the contract. In particular, consider the potential for undue influence, misrepresentation, and lack of understanding due to the complexity of the agreement. Can Daw Lin Sandar seek to rescind the contract on these grounds? If so, what legal steps would she need to take, and how might Victor's actions be viewed under contract law?

Reference no: EM133835024

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