L'Estrange v F Graucob Ltd [1934] 2 KB 394 is a notable case in English contract law that deals with the incorporation of terms into a contract through signature. The case established the general rule that a person is bound by their signature, but there are exceptions to this rule, including fraud, misrepresentation, and non est factum.
1. Fraud: If a party is induced to sign a contract through fraudulent misrepresentation, the contract may be voidable. Fraud involves intentionally deceiving the other party, causing them to enter into the contract under false pretenses. If fraud can be proven, the innocent party may be able to avoid the contract and seek legal remedies.
2. Misrepresentation: Similar to fraud, if a party is induced to sign a contract based on a material misrepresentation made by the other party, the contract may be voidable. Misrepresentation refers to a false statement of fact or law that leads the other party to enter into the contract. If the innocent party can demonstrate that they were misled by the misrepresentation, they may have grounds to rescind the contract.
3. Non est factum: This Latin term translates to "not my deed" and refers to situations where a party signs a contract under a mistaken belief about its nature or terms. If a party can prove that they signed the contract without understanding its fundamental nature, they may be able to argue non est factum and seek to be released from the contract.
In summary, while the general rule is that a person is bound by their signature, exceptions such as fraud, misrepresentation, and non est factum exist. These exceptions provide protection to parties who have been deceived or have made a mistake when signing a contract, allowing them to potentially avoid or rescind the contract.