ACTG 2P40 Chapter Notes -Caveat Emptor, Financial Statement, Inequality Of Bargaining Power
Document Summary
Material could reasonably be expected to influence the decisions of a party to enter into a contract. Innocent misrepresentation if the misrepresentation is made innocently and without negligence, no damages are awarded, the wronged party"s remedy is restricted to the right to rescind. Rescind set the contract aside and out the party back in her pre- contract position. If a party relied on a innocent misrepresentation and learns the true facts, the contract is voidable at the option of the victim, but she must renounce the agreement promptly. She loses the right to rescind if she allows an unreasonable time to pass, or takes further benefits: indemnity or compensation a money award given as a supplement to rescission for loss sustained in performing a contract. Sale of land the right to rescission for innocent misrepresentation is generally lost once title to the property is transferred and the transaction is completed.
