LAW 122 Lecture Notes - Lecture 7: Rescission, Uberrima Fides, Undue Influence
24 Dec 2015
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Document Summary
Contracts need three things: intention, meeting of the mind, consideration. Contracts are dependent on verbal and written interaction between the parties. Content of a contract is determined by how communications were made between the parties- whether the communications were true and how a reasonable person would have understood them. Definition: 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. E. g. misrepresentation are false statement made before an contractual. Do not confuse representation with a contractual term e. g. a promise of a future performance. Distinction is important because they have different legal consequences. Rule: generally the contract will not be enforced. Court may grant rescission- cancellation of contract with the aim of restoring the parties, to the greatest extent possible to their pre contractual state.
