LAW 122 Chapter Notes - Chapter 9: Uberrima Fides, Rescission, Contractual Term
13 Sep 2013
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Document Summary
Not every statement communicated during the negotiation process is a contractual term. Contractual term: is a provision in an agreement that creates a legally enforceable 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 pre-contractual 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. Incorrect statement of fact (incorrect when made) that may be actionable if it induced the contract. 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,
