MGSC30H3 Lecture Notes - Lecture 9: Uberrima Fides, Contractual Term, Special Relationship
Document Summary
Contractual term: provision in an agreement that creates a legally enforceable obligation. * not every statement during negotiation process is contractual term. * promise of future performance - breach of contract if false. Pre-contractual representation: is statement one party makes by words or conduct with the intention of inducing another party to enter into a contract. * statement of existing fact - misrepresentation if false. Misrepresentation: false statement of an existing fact that causes a recipient to enter into a contract. Opinion: statement of belief or judgment misrepresentation if stating the opinion in a way that leads the other party to think that it must be true. Statement of future conduct: not a statement of fact, it is a statement about person"s future intentions misrepresentation if made fraudulently/ described in terms of present intention. Silence would distort previous assertion: change of circumstances affects accuracy of earlier representation, party who made statement has duty to disclose change to other party.
