LAWS 3003 Lecture Notes - Lecture 9: Life Insurance, Material Issue, Fiduciary
Document Summary
If the statement is unambiguous, then a reasonable person would rely on it and therefore there is misrepresentation. Statement must be material or relevant: again, we use the reasonable person test. If you go to a store to buy a product, it"s actually best not to test it first, instead you should want to rely on the representation: an additional exception: If you become aware of the misrepresentation, yet enter the contract anyways: the general rule is that parties are not obligated to disclose everything, however there are exceptions: If it is custom in that industry to always disclose. In the past, there weren"t may cases of this because it was so hard to prove: prior to 1963, everything else was innocent misrepresentation. In 1963, the house of lords created the category of negligent misrepresentation: negligent misrepresentation, h. b v. heller (1964): "hedley byrne were advertising agents placing contracts on behalf of a client on credit terms.
