BUS 205 Lecture 35: BUS 205 Class 35
Document Summary
Begins when a party to a contract says something that is factually wrong. The defendant knew that his statement was false, or that he made the statement recklessly and without knowledge of whether it was false. Opinions and puffery do not amount to fraud. The injured party justifiably relied on the statement. The injured party generally has a choice of: Seller knows something the buyer does not know. Occurs when both parties negotiate based on the same factual error. If the parties contract based on an important factual error, the contract is voidable by either party. ***the theory is there could be no mutual agreement or meeting of the minds if an important fact was incorrect. About selling a cow for thinking that she couldn"t get pregnant, but then she gets pregnant and then the guy wants to sell her for. But the seller won, because he didn"t know all the facts.
