LAW 122 Chapter Notes - Chapter 9: Arbitration Clause, Force Majeure, Contra Proferentem
LAW – Chapter 9 – Representations and Terms
Contractual term – a provision in an agreement that creates a legally enforceable obligation
Promissory statement (voluntarily agreeing to do something in the future)
Pre-contractual representation – a statement one party makes by words or conduct with the
intention of inducing another party to enter into a contract
Does not impose contractual obligation
Objective test – would a reasonable person have thought that the parties meant this to
be a term of the K?
If a non-contractual statement is false, we say that one of the parties has made a
misrepresentation
May result in a form of legal liability
When a contractual statement is not fulfilled, one of the parties is in breach of contract
Misrepresentation – a false statement of an existing fact that causes a recipient to enter into a
contract
Opinion – the statement of a belief or judgement
Future conduct – not a statement of fact, it is a statement of a person’s future intentions
At least 6 occasions when the failure to speak will amount to misrepresentation
When silence would distort previous assertion
When a statement is half truth
When the contract requires a duty of utmost good faith
When a special relationship exists between the parties
When a statutory provision requires disclosure
When facts are actively concealed
Two consequences of an actionable misrepresentation
The remedy of rescission
oRescission – the cancellation of a contract, by the parties or the court, with the
aim of restoring the parties, to the greatest extent possible, to their pre-
contractual state
oAwarded on the basis of the court’s judgement about what is best according to
the rules of reason and justice
oRestitution – involves giving back and taking back on both sides
oAffirmation – occurs when the misled party declares an intention to carry out
the contract or otherwise acts as though it were bounded by it
The right to damages
oDamages – are intended to provide monetary compensation for the losses that a
person suffered as a results of relying upon a misrepresentation
Types of misrepresentation
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Law chapter 9 representations and terms. Contractual term a provision in an agreement that creates a legally enforceable obligation. Promissory statement (voluntarily agreeing to do something in the future) Pre-contractual representation a statement one party makes by words or conduct with the intention of inducing another party to enter into a contract. If a non-contractual statement is false, we say that one of the parties has made a misrepresentation. May result in a form of legal liability. When a contractual statement is not fulfilled, one of the parties is in breach of contract. Misrepresentation a false statement of an existing fact that causes a recipient to enter into a contract. Opinion the statement of a belief or judgement. Future conduct not a statement of fact, it is a statement of a person"s future intentions. At least 6 occasions when the failure to speak will amount to misrepresentation. When the contract requires a duty of utmost good faith.
