Class Notes (809,569)
Canada (493,754)
LAW 122 (809)

Chapter 9Representations and TERMS.doc

4 Pages
Unlock Document

Ryerson University
Law and Business
LAW 122
Nick Iannazzo

Chapter 9 Representations and TERMS PRE-CONTRACTUAL AND CONTRACTUAL STATEMENTS  Not every statement communicated during the negoition process is a contractual term  Contractual Term: is a provision in an agreement that creates a legally enforceable obligation  Contractual term is a promissory statement  Pre-Contractual representation: is a statement one party makes by words or conduct with the intention of inducing another party to enter into a contract  It does not impose a contractual obligation, it could induce the creation of a contract, it does not form part of that contract MISREPRESENTATION  The distinction between contractual terms and precontractual representation is especially important if a statement is false  If a non contractual statement is false, we say that one of the parties has made a misrepresentation Nature of Misrepresentation  Misrepresentation: is a false statement of a fact that causes the recipient to enter into a contract  A contractual term cannot be false when it is given,  A breach occurs when one party fails to perform precisely as promised Misstatement of fact  Not every misstatement during pre-contractual negations is a misrepresentation  Misrepresentation occurs only if the speaker claimed to state a fact  People often make non-factual statements during negations  Give their own Opinion: is the statement of a belief or judgment  During a pre-contractual negation a person may describe how they will act in the future A non promissory statement as to a party’s future conduct is not usually treated as a missreprentation  A court may find a misreprenstation if you inaccurately describe the consequence of a law, because those consequences are treated as a matter of fact rather than law Silence as Misrepresentation  As a general rule, parties are not required to disclose material facts during pre contractual negotiations, no matter how unethical non disclosure may be  Four occasions when the failure to speak will amount to misrepresentation 1. When silence would distort a previous assertion  Party’s silence sometimes has the effect of falsifying a statement that was previously true  Misrepresentation may also occur if a party tells half truth and remains silent on the other half 2. When the Contract requires a duty of utmost good faith  Some contracts require a party to make full disclosure of the material facts(ex. Insurance)  Law imposes an obligation of good faith that requires the customer to disclose all of the relevant facts 3. When a special relationship exits  A friend u trust have to tell them all information and questions that they need 4. When a statutory provision requires disclosure Inducement  For a statement to be actionable as a misrepresentation, the deceived party must prove that the false statement induced the contract  The statement must have misled its recipient into creating the contract THE LEGAL CONSEQUENCES OF MISREPRESENTATION 1. The remedy of rescission 2. the right to damages RESCISSION  is the cancellation of a contract with the aim of restoring the parties to the greatest extent possible, to their pre-
More Less

Related notes for LAW 122

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.