Statements of Fact Flashcards
Statement of fact includes… (3 things)
1) Statements of fact
2) Some conduct
3) Statements of law
Statement of fact DOESN’T include… (3 things)
1) Statements of opinion
2) Statements of intention
3) Silence
When might a statement of opinion misrep?
a) representor has greater knowledge than representee:
= implied statement that there are facts which justify the opinion can significantly mislead the representee.
b) representor in position of superior knowledge/ experience:
= statement of opinion may be held to involve a statement of fact that there are reasonable grounds for their opinion, or its a false statement if no reasonable grounds for that statement
therefore…. a representation will = misrep if in fact the opinion expressed is NOT one which the representor held.
When can a future intention be held as a statement of fact?
If at that point in time they know that they cannot do what they state/don’t intend to do it = they misrepresent their existing intention
What is the general rule in disclosing facts which, if known, might affect the other party’s decision to enter the contract?
No general duty to disclose such facts
In most cases, will silence give rise to an action for misrep?
No
What are the 3 exceptions to the rule that silence won’t give rise to an action for misrep?
(a) Half-truths;
= misrep to make statements which are technically true but misleading.
(b) Continuing representations;
= a true statement but prior to entering into contract becomes false - representor under obligation to correct the representation
(c) Contracts uberrimae fidei (utmost good faith):
= duty to disclose material facts in some types of contracts in which one party is in a particularly strong position to know the material facts which form the basis of the contract - eg:
-INSURANCE CONTRACTS - disclosure of all material facts must be made to the insurer
-Other examples of fiduciary relationships - between a company and its directors, or between a trustee and beneficiaries of a trust.
