MGMT 3100 Chapter Notes - Chapter 9: Urea-Formaldehyde, Caveat Emptor, Rescission

• School: York University
• Department: Management
• Course: MGMT 3100
• Professor: Peter Mac Donald

Document Summary

Misrepresentation: an untrue statement that is believed and relied upon by another party. May amount to a tort when it is made fraudulently or negligently. An innocent misstatement no tort committed. An innocent misrepresentation becomes fraudulent or negligent if the party responsible if error is discovered, must inform parties immediately fails to correct it when in a position to do so. Material information: subject matter that could reasonably be expected to influence the decision of a party to enter into a contract. Fraudulent misrepresentation: statement made knowingly, without belief in truth, or made with reckless abandon. Maker of the statement knows they are being inaccurate; with intent to deceive. Negligent misrepresentation: statement made carelessly (does not require intent to deceive) Maker of the statement makes the mistake carelessly; their careless statement is inaccurate; obligation to be careful. Ex. car dealership selling used cars duty of care. Innocent misrepresentation: statement made innocently with due care and without of knowledge inaccuracy.