LAW 122 Lecture Notes - Uberrima Fides, Contractual Term, Rescission
19 Apr 2013
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Document Summary
Not every statement communicated during the negoition process is a contractual. Contractual term: is a provision in an agreement that creates a legally enforceable term obligation. 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. 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. 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. Not every misstatement during pre-contractual negations is a misrepresentation.
