COMMERCE 4SD3 Chapter Notes - Chapter 9: Rescission, Precontract, Undue Influence

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4SD3
• Professor: Paul Stillman

Document Summary

Grounds a contract may be impeached: misrepresentation, undue influence, and duress. Misrepresentation may result in a tort when it is made fraudulently or negligently. Victim is someone who reasonably relies on the misrepresentation and suffers loss. A person who innocently makes a misrepresentation and later learns that it is false, they can be held liable if they do not inform the party of the true situation. Material: could reasonably be expected to influence the decision of a party to enter into a contract. Rescind: set the contract aside and put the party back in her pre-contact position. Misrepresentation often occurs before a contract is made and if it is material a court may set the contract aside at the request of the innocent party. If the misrepresentation was innocent then the contract is only rescinded. But if the misrepresentation was fraudulent or negligent then the innocent party may be awarded damages.