LAWS 3003 Lecture Notes - Lecture 7: Uberrima Fides, Fiduciary, Rescission
Document Summary
Statements of fact are not binding until they become part of the contract: statement must be unambiguous, material or relevant, and must be reliance on it by the represented in order to enter in the contract. If a statement is ambiguous then we cannot enter into a contact; no reasonable person would do so. If a statement is not made material the claim is made void. Insurance contracts state that every statement is material- clause requiring you to fill out any pre-existing health issues and then you drop dead from one that you answered not to, then your beneficiary is not entitled to the policies. Reliance the representee must have relied on the statement to enter the contract: 1. Counter intuitive representee decides to test the truth of the statement and does not discover the truth of the subject matter. Did not know that there was a misrepresentation; didn"t hear, didn"t know, etc.
