LAW 122 Lecture Notes - Lecture 9: Car Rental, Ski Lift, Oral Contract
7 Apr 2016
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Not all statements made during contract negoiaions are contractual terms. Statements becomes a contractual term when incorporated into contract. Once statement becomes a contractual term if it gives rise to legal contractual obligaion. Failure to fulill contractual = statement = misrepresentaion contractual breach. Misrepresentaion -false statements of exising fact causing recipient to enter into contract o o. False statements versus pufs (reasonable person would not rely on pufs) This is the most stylish car ever versus this car has leather seats. Speaker must claim to state a fact o. False opinions generally do not trigger misrepresentaions but certain opinions may be problemaic (eg. expert opinions) Paries generally not required to disclose material facts o. Contract rescission (chapter 11) but not breach of contract. In order to consitute a misrepresentaion the false statement of fact must have induced deceived party to enter into contract o o. Misrepresentaion need not to be only inducing factor.
