ACTG 2P40 Lecture 7: Lecture 7

• School: Brock University
• Department: Accounting
• Course: ACTG 2P40
• Professor: Tommy Wall

Document Summary

Misrepresentation: representations vs. terms in a contract. A representation is a statement made during negotiations or lying during negotiations. A term is a term in a contract. If you breach a term, the other party can sue you. If (cid:455)ou (cid:271)rea(cid:272)h a represe(cid:374)tatio(cid:374), that"s (cid:374)ot grou(cid:374)ds for sui(cid:374)g ((cid:374)o damages: requirements for a finding of misrepresentation, the statement must be material. The statement must be important and has to go to the heart of the contract. E(cid:454)a(cid:373)ple: (cid:449)he(cid:374) selli(cid:374)g a (cid:272)ar, the tire is (cid:373)issi(cid:374)g; is(cid:374)"t the a(cid:272)tual material: the misrepresentation must be statement of fact (not opinion) It has to be a statement made by the one party as opposed to an opinion. The only time an opinion will be taken as a fact is when the person giving the opinion is an expert in that field: the statement must be intended to be acted upon.