LAW 122 Lecture Notes - Lecture 10: False Statement, Risk Management, Transact
Document Summary
Misrepresentation: false statement of fact made prior to contract, fact/opinion, fact/law, fact/conduct, buyer beware. Exception: when silence misrepresentation = : rule: without capacity void, exception: necessities of life enforceable (education, clothes, food) Is a false statement of an existing fact that causes recipient to enter into a contract: a statement of an existing fact, that is false when made, may be actionable if it induced a contract. Exception to silence rule for relationship with insurance company. There can be a problem with incapacity. Capacity: legal power to give consent: example: minors, mentally incapacitated persons, intoxicated persons, corporations, associations, indian bands/aboriginal persons, and public authorities. Age of majority: is the age at which a person is held fully accountable in law. Minors: are people who have not reached the age of majority. Voidable: if a minor is entitled to avoid the legal obligations that the contract would have otherwise created. Chartered corporations: are treated the same as individuals who have reached.
