LAW 122 Lecture Notes - Lecture 30: Uberrima Fides, Parol Evidence Rule
1 Oct 2017
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In this instance, the deceit arises not only as a result of the special knowledge that the agent had but also because the real estate agent had a special relationship with her client. A purchaser who uses an agent enters into a trust relationship. On the facts, zhou did not merely list the property as commercial/residential. He also made representations saying what the zoning bylaw would allow the purchaser to do with the lot. As such, there is a plausible argument that the statement misrepresented the consequences of the law. Such statements are actionable as there is no presumption that people know the consequences of the law. On this basis, dalvi is likely to succeed: the duty of utmost good faith arises because the person seeking insurance is the only one in a position to know the material facts. The insurance industry can only function if insurers are able to determine the likelihood of a specific kind of loss occurring.
