BUSAD 120 Lecture Notes - Lecture 18: Time Inc., Financial Statement, False Advertising
Document Summary
Peters has no prior business experience, trusted and respected fiasche: they claim fiasche fraudulently misrepresented the business to them (inaccurate financial statements) If in fact the peters acted on error, it was an inexcusable error, peters understood that the only way to make money from this business was to defraud the government. While the purchaser was not entitled to rely on the claim of fraud, the court annulled the transaction on the grounds that the cause of the contract was illicit. Judge says there is no fraud, no misrepresentation under ccq 1401. If nullify contract under ccq 1407, under invalid consent, you can claim damages. In 1999, richard received a notice in the mail that said he won a large cash price: it was only an advertisement to encourage people to enter a contest by purchasing a subscription to time magazine.
