LAW 122 Lecture Notes - Lecture 7: Uberrima Fides, Contractual Term, False Statement
30 Nov 2018
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Document Summary
Pre-contractual and contractual statements: contractual term: provision in an agreement that creates a legally enforceable obligation, pre-contractual representation: statement one party makes by words or conduct with the intention of inducing another party to enter into a contract. Factual statements (not actionable as misrepresentation) (actionable as misrepresentation) The legal consequences of misrepresentation: there are 2 possible consequences of an actionable misrepresentation. The deceived party may receive: (1) the remedy of rescission. Rescission: cancellation of a contract, by the parties or the court, with the aim of restoring the parties, to the greatest extent possible, to their pre-contractual state. Remedy of rescission is often accompanied by an order for restitution: involves giving back and taking back on both sides. Affirmation: occurs when the misled party declares an intention to carry out the contract or otherwise acts as though it were bound by it. If misled party affirmed the contract, then rescission is not available.
