BU231 Chapter Notes - Chapter 9: Regulatory Offence, Credit Bureau, Better Business Bureau
Document Summary
Chapter 9: grounds upon which a contract may be impeached (ended) Misrepresentations can provide a cause of action in both contract and tort. Three types of misrepresentation: fraudulent, negligent. Note that an innocent misrepresentation becomes fraudulent or negligent if the party responsible fails to correct it when in a position to do so. In tort, only 1) fraudulent and 2) negligent misrepresentation give rise to remedy, recover loss from wrongdoer. If the maker of the misrepresentation acted fraudulently or negligently then the court will grant damages against the wrongdoer. Purpose of rescission is to restore the parties as nearly as possible to their position before entering the contract, such as returning any out-of-pocket expenses in performing the contract. Purchaser"s are expected to search title, exercise right to rescind before completion of transaction. Note: beware any standard form contract excluding representatives: known as an entirety clause.
