Law Block 2 Chapter 9 Samenvatni
Misrepresentation
Misrepresentaton an untrue statement and a material inducement to a party to enter a contract
Voidable contract a contract exists but the innocent party may refuse to perform it
Misrepresentee person to whom a misrepresentaton is made
Misrepresentat(or) person who makes a misrepresentaton
Liability for failure to disclose informaton may arise, however, any of the followini circumstances
1. Half-truths a statement that may be true as is stands, but is stll misleadini because it is
incomplete
2. Circumstances chanie between makini the statement and acceptance
3. A fduciary relatonship (a leial relatonship with a very hiih deiree of trust by one party in
another’s expertse, knowledie, etc., iivini that other party capacity to infuence their
decision) exists between the partes (doctor—patent)
Remedies for Misrepresentation
Fraudulent Misrepresentaton an untrue statement made intendini to deceive or recklessly not
carini whether is it true or false
Rescission an equitable remedy requirini a party to a voidable contract to iive back money/
property to the party who has avoided the contract
Careless misrepresentaton a true statement made without reasonable belief in its truth
Innocent mispresentaton an untrue statement not made fraudulently; may be made carelessly or
with reasonable belief
Mistake
Void contract no contract exists in the eyes of the law
Operatve mistake one which makes a contract void because it prevents true aireement between
the partes
Common mistake both partes make the same mistake
Mutual mistake both partes each make a diferent mistake
Unilateral mistake one contractni party is mistaken; can only make the contract void if:
1. One party enters a contract crucially mistaken and would not have made the contract if they
had known the truth
2. The other party should reasonably have known of the mistake
3. The mistaken party is not at fault
Voidable ttle provisional ownership of ioods lost by the misrepresentor of the misrepresentee
avoids the contract before bona fde (without intenton to deceive) the third party buys them
Misrepresentation
Misrepresentaton an untrue statement and a material inducement to a party to enter a contract
Voidable contract a contract exists but the innocent party may refuse to perform it
Misrepresentee person to whom a misrepresentaton is made
Misrepresentat(or) person who makes a misrepresentaton
Liability for failure to disclose informaton may arise, however, any of the followini circumstances
1. Half-truths a statement that may be true as is stands, but is stll misleadini because it is
incomplete
2. Circumstances chanie between makini the statement and acceptance
3. A fduciary relatonship (a leial relatonship with a very hiih deiree of trust by one party in
another’s expertse, knowledie, etc., iivini that other party capacity to infuence their
decision) exists between the partes (doctor—patent)
Remedies for Misrepresentation
Fraudulent Misrepresentaton an untrue statement made intendini to deceive or recklessly not
carini whether is it true or false
Rescission an equitable remedy requirini a party to a voidable contract to iive back money/
property to the party who has avoided the contract
Careless misrepresentaton a true statement made without reasonable belief in its truth
Innocent mispresentaton an untrue statement not made fraudulently; may be made carelessly or
with reasonable belief
Mistake
Void contract no contract exists in the eyes of the law
Operatve mistake one which makes a contract void because it prevents true aireement between
the partes
Common mistake both partes make the same mistake
Mutual mistake both partes each make a diferent mistake
Unilateral mistake one contractni party is mistaken; can only make the contract void if:
1. One party enters a contract crucially mistaken and would not have made the contract if they
had known the truth
2. The other party should reasonably have known of the mistake
3. The mistaken party is not at fault
Voidable ttle provisional ownership of ioods lost by the misrepresentor of the misrepresentee
avoids the contract before bona fde (without intenton to deceive) the third party buys them
