LAW 122 Lecture Notes - Lecture 10: Guesstimate, Unconscionability, Fiduciary

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Omar Ha Redeye

Document Summary

Misrepresentation: false statement of a prior existing fact that causes (induces) recipient to enter into a contract. Legal test: a statement of a prior existing fact . 2: may be actionable if it induced a contract (statement induced person to enter into contract that is false when made . Statement must be false when made 3 kinds of misrepresentation. Innocent misrepresentation: person making the statement did not know how it was made and could not reasonably have known it was false by investigating the fact. Negligent misrepresentation: person making the statement should have known the statement was false but was negligent (careless) in investigating the facts constitutes a tort. Fraudulent misrepresentation: person making the statement knew the statement was false when they made it and intended to deceive the person to whom it was made. Statement induces person to enter into the contract . The person must have reasonably relied on the statement when entering into the contact.