BUS 393 Lecture Notes - Lecture 2: Rescission, Consumer Protection, Clean Hands

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 393
• Professor: Shafik Bhalloo

Document Summary

Misrepresentation: involves false and misleading statements to induce a person to enter into a contract. False means half-truths, where what is not mentioned makes the statement misleading. If a false statement is a term of contract, the remedy is to sue for breach of contract. False statements that induce a contract are also actionable. Often there misleading statements never become part of the contract, even though they are persuasive and the reason the person enters into the agreement in the first place. Ie. you purchase property because the vendor told you that a new resort is being built nearby, the purchase agreement doesn"t make reference to the new resort. But you still relied on that false information and it persuaded you to buy the property, so you have recourse under misrepresentation. To be actionable, a false statement must be a statement of fact, not an opinion or a prediction of some future event.