teju2000
17-12-07, 04:33 AM
Misrepresentation is a false statement of existing fact which induces a contract.
From this definition, we can see that there are four elements we must consider to see whether misrepresentation has occurred:
· a false statement
· induction
· contract
· remedies
The second of these, induction, is not covered here.
Representation occurs before a contract is made. Parties negotiate by making statements; some of these will become terms of the contract, and some will become representations.
If the false statement becomes a term of the contract, the wronged party may sue for breach of contract. If the false statement becomes a representation, the wronged party has an opportunity to void the contract and sue for misrepresentation.
How do we decide which become terms and which become representations? There is no fixed formula, and, unless it is specified in the contract, the judge must rule on each statement. Generally, the more important statements are terms.
From this definition, we can see that there are four elements we must consider to see whether misrepresentation has occurred:
· a false statement
· induction
· contract
· remedies
The second of these, induction, is not covered here.
Representation occurs before a contract is made. Parties negotiate by making statements; some of these will become terms of the contract, and some will become representations.
If the false statement becomes a term of the contract, the wronged party may sue for breach of contract. If the false statement becomes a representation, the wronged party has an opportunity to void the contract and sue for misrepresentation.
How do we decide which become terms and which become representations? There is no fixed formula, and, unless it is specified in the contract, the judge must rule on each statement. Generally, the more important statements are terms.