LAWS1100 Study Guide - Midterm Guide: Equitable Remedy, Undue Influence, New Ferry
Document Summary
A false statement of fact is made by one party to another - if the other party was induced to enter into the contract by a misrepresentation, the contract is voidable. 3 types of misrepresentation fraudulent, innocent and negligent. (talk about all 3 in exam) The representor does not correct a previous statement after discovering it is untrue. A failure to disclose distorts a statement previously made so that it becomes a half-truth. There is a legal obligation of full disclosure by parties during negotiations. Fraudulent misrepresentation (the worst one) (they"re lying and they know it. ) The representor knows or believes that the statement is untrue and presents it to be true or accurate with the aim of making the other party enter into the contract. Example derry v peek (1889): a case where they were found not to be fraudulent. Parties affected by fraudulent misrepresentation may rescind the contract and sue for damages.
