Flashcards
Defect
Cards in this deck (8)
- 1It is a false statement of fact made by the representor to the representee in the course of negotiations to induce the representee to enter into the contract.Misrepresentation
- 21) The representor has made a false statement of fact. 2) The statement made must be material. 3) The representee must rely on the statement in deciding to enter the contract.3 Conditions for party to claim misrep.
- 31) Innocent - A statement made honestly with reasonable grounds in believing in its truth. 2) Negligent - A statement made honestly without reasonable grounds in believing in its truth 3) Fraudulent - A statement made dishonestly knowing that it is untrue or being reckless to check whether it is true or not.3 Types of Misrepresentation
- 4Innocent - usually rescission. Court may award damages if it is fairer under Misrep. Act Negligent - rescission &/or damages (compensation) Fraudulent - rescission &/or damages for tort of deceit.Remedies for Misrepresentation
- 51) Lapse of time - under innocent or negligent misrepresentation, the representee must take steps to rescind the contract within a reasonable time. If he fails to do so, he may lose the right to rescind the contract.4 Limits to Rescission
- 62) The party misled affirms the contract - If the party misled has full knowledge of truth, chooses to affirm and go on with the contract either by words or by conduct then he cannot rescind the contract4 Limits of Rescission
- 73) Restitution is impossible Party rescinding contract must return goods in good condition. Damaged goods makes restitution impossible. Misled party may pay for damages. 4) Rights of 3rd parties affected. When a 3rd party now has the goods, rescission is not possible4 limits of Rescission
- 8—Contracts for Minors
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- Flashcards on Defect, created by zaafira safa on 13/08/2017.
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- zaafira safa
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