LAW 122 Lecture Notes - Lecture 10: Uberrima Fides, Ultra Vires, Statutory Corporation
12 Oct 2016
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Definition: misrepresentation is a false statement of an existing fact that causes recipient to enter into a contract: a statement of an existing fact, that is false when made, may be actionable if it induced a contract. Opinions, predictions, or statement of law are not statements of fact. Car is reliable vs. the mechanic examined and said that the car is reliable. Zoning laws do not apply vs. zoning has been approved. When is it not a statement? i. e. silence. General rule: parties are not required to disclose materials facts during negotiations, unless. Contract being negotiated is of utmost good faith. If any of this happens, it will be a misrepresentation. Inducement: in order to be a misrepresentation , the false statement of fact must have induced deceived party to enter into the contract. Types of misrepresentation: innocent (did not know it was false), negligent (should have known)
