LAW 122 Chapter 9: Chapter #9.docx

• School: Ryerson University
• Department: Law and Business
• Course: LAW 122
• Professor: Avi Weisman

Document Summary

It does not impose a contractual obligation, it could induce the creation of a contract, it does not form part of that contract. The distinction b/t the contractual term and pre-contractual representation is especially important if a statement is false. The distinction is important b/c misrepresentation and breach of contract have different legal effects. y pre-contractual representation may result in a form of legal liability, such as actionable misrepresentation, but not in an action for breach of contract. The nature of misrepresentation y misrepresentation: is a false statement of an existing fact that causes the recipient to enter into a contract. In contrast, a contractual term is not mean to describe an existing state of facts, but rather it provides a promise of future performance: given promissory nature, a contractual term cannot be false when it is given. Nor can a breach of contract occur as soon as such a promise is made.