LAW 122 Chapter Notes - Chapter 9: Collateral Contract, Contra Proferentem, Parol Evidence Rule
26 Mar 2017
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Document Summary
Pre-contractual statements are statements made during negotiations, before the contract is created. Some of these statements we classify as representations = induce the creation of contract but not part of contract (e. g. this car"s engine is in perfect condition ). Other statements we define as terms = the promises included in contract (e. g. i will sell you my car for ,000 ) the test to distinguish the two: parties" objective intentions. 2. a statement of an existing fact that is false when made : may be actionable if it induced a contract, statement of fact. Meaning: non factual statements are not actionable: opinion based on speculation description of future intent statement of law. Factual statements are actionable: expert opinion description of one"s present intent statement of legal consequences. Therefore, it is sufficient that misrepresentation was one inducement inducement is presumed if inducement is intended recipient is not obliged to investigate representations.
