LAW 122 Chapter Notes - Chapter 9: Contra Proferentem, Rescission, Collateral Contract
20 Mar 2018
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Document Summary
Important because misrepresentation and breach of contract have different legal effects. Such statements are not usually treated as misrepresentations: court may find misrepresentation if you inaccurately describe the consequences of a law because those consequences are treated as a matter of fact rather than law. If a party to a contract actively conceals the truth it may be treated as a misrepresentation. Legal consequences of misrepresentation: 2 possible consequences of an actionable misrepresentation. Deceived party may receive: remedy of rescission, right to damages. If damages are awarded for a misrepresentation the pls claim arises not in contract but in tort. Innocent misrepresentation is a statement a person makes carefully and without knowledge of the fact that it is false. If fraud is proven the courts are particularly eager to award damages. Contractual terms: contractual terms arise from statements that impose obligations under the contract.
