MISREPRESENTATION

Question 1

misrepresentation

Answer 1

may be claimed under tort and contracts

Question 2

6 doctrines permit people to avoid their contracts due to absence of real consent

Answer 2

incapacity, duress (undue influence too), misrepresentation, fraud , concealment and non-disclosure, and mistake

Question 3

misrepresentation under 159

Answer 3

representation that is not in accord with the facts. adversely affects the party’s ability to intend or assent to an agreement

Question 4

5 types of misrepresentation

Answer 4

false statement
half truth
concealment
non-disclosure
fraud

Question 5

misrep negligent false statement

Answer 5

failed to use reasonable care or competence to ascertain the truth
contract is voidable

Question 6

misrep innocent false statement

Answer 6

misleading another by affirmatively stating a mistruth. lack of reasonable care or made without knowledge of falsity. contract is voidable

Question 7

misrep half truth

Answer 7

technically true as to spoken part but silent on another issue which leads party to assume false conclusion. statement is incomplete. contract is voidable

Question 8

misrep/fraud in inducement

Answer 8

misleading another by affirmatively stating a mistruth for the purpose of entering into a contract
made with knowledge or in reckless ignorance of falsity or intentionally
contract is voidable

Question 9

fraud in execution (factum)

Answer 9

misleading another by affirmatively stating a mistruth about the nature of a contract
made with knowledge or reckless ignorance of falsity or intentionality
VOID

Question 10

MISREP concealment

Answer 10

taking affirmative steps to hide the truth
actively hiding the truth or concealing/preventing the other party’s discovery is the equivalent to an assertion that the fact does not exist. contract is voidable

Question 11

misrep non-disclosure

Answer 11

intentionally remaining silent and knowingly permitting the other party to misunderstand. non-disclosure of the fact is the equivalent to a false assertion
VOIDABLE

Question 12

NON-DISCLOSURE classical view

Answer 12

a party to a business transaction could not avoid the transaction because of non-discolosure of material information by the other party

Question 13

nondisclosure modern view 161

Answer 13

a party has an affirmative duty to disclose material facts when the disclosure is necessary to prevent a previous assertion from being a misrepresentation or a fraud.
remedy is rescission

Question 14

misrep of fact exists

Answer 14

can be past or present

cannot be future or opinion

Question 15

classic puffing

Answer 15

no harm no foul

Question 16

misrep 159

Answer 16

statement of opinion can be misrep if giving opinion misrepresented his state of mind

Question 17

opinion 169

Answer 17

stands in a relation of truster confidence with recipient, an expert on matters covered by opinion, renders opinion to someone who is susceptible to misrepresentation

Question 18

misrep nexus

Answer 18

material, justifiably relied upon, detriment, injury resulted

Question 19

element of misrep material

Answer 19

voidable under 164

Question 20

misrep damages

Answer 20

either restored to pre-contract status through rescission or can keep property and recover the damages

Question 21

can active misrepresentation trump the principle of not being able to claim ignorance on signed contract?

Answer 21

yep if it was active misrep

Question 22

arms length

Answer 22

no control or influence by one present over the other. usually family members and friends to avoid undue influence