Mod 5 Misrepresentation

Front 1

Misrepresentation Definition

Back 1

afalse statement of fact

Front 2

•Misrepresentation is different from________

Back 2

Opinion

Front 3

Misrepresentation Vs Opinion

Back 3

• “Weatherconditions have been poor”
• “It has rained every day from Sept. 1stuntil Nov. 30th”

• “Weare a good bridge builder” “
• Wehave built 10bridges”
  

Front 4

Define Recession

Back 4

Rescission frees partied from their obligations

Front 5

If a person is induced intoa contract bymisrepresentation thenthey may have the opportunity to ________ the contract

Back 5

Rescind

Front 6

Rules of Rescission

Back 6

• Has to be an important factor in the contract
• If the misled party had known the true facts, they would have not entered that contract

Front 7

When a person has the opportunity to rescind the contract is _______________ but party can still __________ the contract if they want

Back 7

• voidable
• affirm

Front 8

Can a party lose its right to rescission ?

Back 8

• Yes, if they do not act quickly when they learned the true facts

• CANNOT enjoy the benefits for a while then decide to rescind

Front 9

Rescission situation must be able to return to its _____________ state

Back 9

• Pre-contract
  
• Difficult to rescind construction contracts once work is underway

Front 10

Thefalse statement may also be a ________ of the contract

Back 10

e.g. Soil Conditions

Front 11

In a situation where a party is misled they can claim a _______ of _________ as well as pursue ___________

Back 11

• Breach of Contract
• Rescission

Front 12

Are breach of contract and rescission the same?

Back 12

• No, these would be treated as separate issues
• eg. party could succeed in their breach of contract but fail to get rescission

Front 13

Innocent Misrepresentation

Back 13

• a genuine mistake
• Rescission is the only remedy for innocent misrepresentation

Front 14

Fraudulent Misrepresentation

Back 14

• one party has deliberately misled the other
• or made a statement without caring whether it is true or not
• or deliberately withheld important info

Front 15

Negligent Misrepresentation Occurs when

Back 15

• a party has failed to disclose information

Front 16

Principles of negligent Misrepresentation come from ____________ _____________ case

Back 16

Hedly Byrne

Front 17

Example if negligent misrepresentation

Back 17

•Engineerfailedto include information in bid package that would influence contractor’sdecision to bid

•Designinaccuraciesrelied upon by bidding contractors

Front 18

Summary

Back 18

•Misrepresentation is a false statement offact

•If a person is induced into a contract bymisrepresentationtheycan rescindthecontract

•Rescissionreturns the parties to the position they were in before the contract•Once you learn the truth you must actquickly and reject benefits to obtain rescission

•Situation must be capable of being returned to itspre-contract state to obtain rescission•Innocent, fraudulent* and negligent* misrepresentation

•*Damagesmaybe obtainable in addition to rescission

•Disclaimer clauses can protect againstnegligent misrepresentationcom,goldenline.pl,wiki.mikejung.biz,naveen