LAWS1100 Lecture Notes - Lecture 7: Company Secretary, False Statement, Apparent Authority
Document Summary
Common law contract principles: policy underpinnings to contract law, caveat emptor let the buyer beware, freedom of contract free and voluntary consent. Misrepresentation: false statement of fact made by one party to another. If the other party was induced to enter into the contract by a misrepresentation, the contract is then voidable. Innocent misrepresentation: elements of innocent misrepresentation, when the representor does not intend to deceive anyone, the misrepresentation is made unintentionally, see: oscar chess ltd v williams [1957, can rescind contract, but cannot sue for damages. Recap: remedies for misrep: rescission: allows innocent party to terminate the contract, an equitable remedy, damages: available for fraudulent/negligent misrep, damages are not available at common law for innocent misrepresentation. If the other party was tricked/deceived into entering into a contract they can commence legal action using statutory provisions in the acl that prohibit misleading/deceptive conduct, false representations and other unfair practices. The mistake relates to fundamental aspect of the contract.
