LAW 122 Chapter Notes - Chapter 9: Force Majeure, Rescission, Parol Evidence Rule

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Tim Storus

Document Summary

Therefore, distinguishing is needed between contractual terms and pre-contractual representation. A statement becomes a contractual term if it is included in an agreement that creates a legally enforceable obligation. A pre-contractual representation is a statement one party makes by words or conduct with the intention of inducing another party to enter into a contract. The distinction between contractual terms and pre-contractual representation is especially important if a statement is false. When a non-contractual statement is false, then the parties made a misrepresentation. When a contractual statement is not fulfilled we say that one of the parties is in breach of contract. The nature of misrepresentation: a misrepresentation is a false statement of an existing fact that causes a recipient to enter into a contract. Whether it is about the past or present, it is false: misstatement of fact: A misrepresentation occurs only if the speaker claimed to state a fact.