LAW 122 Lecture Notes - Lecture 8: Golden Rule, Contra Proferentem, Rescission
1 Dec 2017
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Expressions made during negotiations before contract was formed. If false, then liability: on behalf of person who made the statements. Misrepresentation: a false, factual statement that induced the contract. Statement must have induced the recipient to enter into the contract. Misrepresentation does not have to be the only inducing factor. But recipient cannot succeed if it did not rely on the statement. Eg. recipient conducts independent inquiry into the statement- old lady taking car to another mechanic. Intention of party making statement does not matter. Parties not required to disclose material facts during negotiations- remain silent. No obligation is made then it must be true. But if statement is made then it must be true. Did the omission of facts substantially alter the meaning of the actual statement. The car comes with a 3 year comprehensive warranty -(left unspoken): but the engine isn"t covered. First meeting this car has never been in an accident .
