BUS 393 Chapter Notes - Chapter 8: Uberrima Fides, Caveat Emptor, Rescission
20 Nov 2011
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Chapter 8 factors affecting the contractual relationship. Rectification: courts will correct/rectify if clear that both understood agreement, but wrote something different from that understanding. If one party intended something different, court will not rectify. One-sided mistake: unilateral mistake only one party makes mistake with respect to contract. If there was no misrepresentation or misleading information => no remedy: when offeror makes obvious error, purchaser not allowed to snap up offer. If one-sided mistake is profound (eg. identity) => contract void; otherwise, caveat emptor (buyer beware) applies. Non est factum ( it is not my act ) Rules of interpretation: statement must be factual, not opinion or promise. Exceptions: if it is a future promise, only misrepresentation if clearly shown that, if it is opinion, only misrepresentation if it is an expert"s opinion promiser had no intention of honouring the promise when it was made. Fact must be incorrect and untrue; withholding parts of truth may also be misrepresentation.
