LAW 122 Chapter Notes - Chapter 9: Uberrima Fides, Businessperson, Canadian Bankers Association
1 Aug 2020
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Document Summary
Contractual term provision in an agreement that creates a legally enforceable obligation: by nature, a promissory statement, person who makes it voluntarily agrees to do something in future. Pre-contractual representation statement one party makes by words or conduct with intention of inducing another party to enter into a contract: does not impose contractual obligation. Distinction between contractual terms and pre-contractual representations important, especially if false statement. Misrepresentation and breach of contract have different legal effects. Misrepresentation false statement of existing fact that causes recipient to enter into a contract. Contractual term can"t be false when given: breach only occurs when one of parties fails to perform precisely as promised. Not every misstatement during pre-contractual negotiations is misrepresentation: occurs only if speaker claimed to state a fact. Sometimes state their own opinion: opinion statement of a belief or judgement. Personal opinion is not usually a misrepresentation, even if it is false.
