LAW 122 Lecture Notes - Lecture 8: Unconscionability, Risk Management, Undue Influence
21 Dec 2016
School
Department
Course
Professor
Document Summary
Misrepresentation is a false statement of an existing fact that causes recipient to enter into a contract: a statement of an existing fact , that is false when made , may be actionable if it induced a contract. Opinions, predictions or statement of law are not statements of fact. Opinion v. fact = (car is reliable v. the mechanic examined and said the car is reliable) Statement of law v. fact = (zoning laws don"t apply v. zoning has been approved) When is it not a statement? (i. e. silence) General rule: parties are not required to disclose material facts during negotiations, unless silence distorts a previous assertion. Contract being negotiated is of utmost good faith. A special relationship exists between the parties. A statutory provision requires disclosure or facts are actively concealed. If any of this happens, it will be a misrepresentation.
