Misrepresentation Flashcards
What are the elements of actionable misrepresentation?
- Unambiguous
- False
- Statement of fact
- Addressed to claimant
- Induces claimant to enter contract
What is not considered when deciding if a representation is unambigious?
Representee’s own unreasonable construction
What is required for a statement to be false?
Not substantially correct
What statements dont amount to statements of fact?
- Opinion
- Future intentions
- Silence
- mere puff
What can amount to a statement of fact?
- conduct
- statements of law
What are the exceptions to opinion not being a statement of fact?
o Representor has greater knowledge than representee
o Representor in position of superior knowledge/experience
o Not an actual opinion of representor
What are the exceptions to future intentions not being a statement of fact?
o Representor knows they cannot do it
o Representor doesn’t intend to do it
What are the exceptions to silence not being a statement of fact?
o Half truths
o Continuing representations (becomes untrue)
o Utmost good faith
What question is asked when deciding if a representation induced a representee to enter into the contract?
Was the representation material
How is it proven whether a representation was material?
Would a reasonable person have been influenced OR
was claimant subjectively influenced
When will a representation not be actionable misrepresentation?
- Statement was not communicated to C
- Statement did not affect C’s decision
- Statement known to be untrue by C
How may a representor prove that their statement did not induce the claimant to enter the contract?
C made own investigations and relied on that
What is contributory negligence?
where C failed to make investigations where reasonable to do so/investigated negligently
What is contributory negligence not available for?
Misrepresentations that are fraudulant
What is fraudulant misrepresentation?
False representation made:
- knowingly
- without belief in truth
- or recklessly
