Contract lawLesson 2 of 3 in the course Terms, misrepresentation and vitiating factors

Misrepresentation: Elements, Classification, and Remedies

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

This lesson introduces misrepresentation and distinguishes a pre-contractual representation from a contractual term. It also explains when silence or an untrue statement may become legally significant.

A misrepresentation is a false or misleading statement of fact made by one party to another during negotiations that induces the other party to enter into a contract. A person misled by such a statement may be able to rescind the contract and, depending on the circumstances and type of misrepresentation, may also be entitled to damages.

All flashcards

What is a misrepresentation?
A false or misleading statement of fact or law that induces another party to enter into a contract.
What is a representation?
A pre-contractual statement made during negotiations; it may or may not become a contract term.
What factors can indicate that a representation became a contract term?
Relevant factors include relative expertise, reliance, reassurances, trade custom, and whether a collateral contract was formed.
Is there a general duty of disclosure in English contract law?
Generally, no. Disclosure duties can arise in particular relationships, such as between agent and principal, or in certain contracts.
When can an opinion amount to misrepresentation?
An opinion may be actionable if it is not genuinely held or implies a factual basis the speaker knows or should know.

Quiz questions

  1. To establish inducement in a misrepresentation claim, what must the claimant generally show?Answer: The statement played a real part in the decision to contract.
  2. Who may generally bring a claim for misrepresentation?Answer: A person the statement was intended to reach, directly or through an intermediary.
  3. How does an opportunity to investigate a statement generally affect reliance?Answer: The opportunity to investigate does not by itself defeat reliance.
  4. Under the test for fraudulent misrepresentation, which conduct can make a statement fraudulent?Answer: Knowing it is false, disbelieving it, or being reckless about its truth.
  5. How is a contract affected by misrepresentation generally characterized before it is avoided?Answer: It is voidable, so the misled party may avoid it or affirm it.

Based on the Wikipedia article Misrepresentation, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.

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