The aspects of Misrepresentation in contract law Misrepresentation is a false statement of fact and law, which induces the represented to enter a contract. When a statement has been made during the course of negotiations it is then classes as a representation rather than a term an action for misrepresentation may be available where the statement turns out to be untrue. In misrepresentation has there different of types. • Innocent misrepresentation • Negligent misrepresentation • Fraudulent misrepresentation To find a misrepresentation is to find if the contract is voidable. The contract exists but may be set aside by the representee.
Although, sales of consumer goods are not adjusted by the CISG but are adjusted by the UCC. Specific Similarities in Contract explanation: Contracts are often obscure in certain areas, but both the UCC and CISG provides the same way of interpretation. To decipher ambiguities, the UCC and CISG allow the use of course of dealing, course of performance and usage of trade. Specific warranty similarity is: Both provides similar coverage for warranties, including, specifically implied warranties of merchant strength and fitness for a particular purpose. These implied warranties may mention in sections 2-314 and 2-315 of the UCC and Article 35 of the CISG.
Introduction The term of remoteness refers to legal test of causation that is used to determining the types of loss caused by a breach of contract or duty which may be compensated by a damages award. In another word, remoteness is a set of rules in both tort and contract, which limits the amount of compensatory damages for a wrong. We can refer to the case of Hadley v. Baxendale where Baron Sir Edward Hall Alderson had declined in allowing Hadley to recover his lost profits in this case, holding that Baxendale could only be held liable for losses that were generally foreseeable, or if Hadley had mentioned his special circumstances in advance. The application of this test: Contract v. Tort In Contract law, the test of remoteness can be
But unless this method is adjusted, it is not acceptable under IFRS and US GAAP (mainly because it allocates also selling and administrative overheads). Costs of the product/service under absorption costing method include direct costs and allocated share of overheads (production and usually also non-production as
2- Mistake of fact. First, mistake of law; after a person enters into a contract and he or she don’t have information of the law in the state or place where agreement make, and this agreement is affected by mistakes but it is not void. So that leads us to know that ignorance of law is not an justification. if a party is induced to enter into a contract by the’ mistake of law’ so a contract is not valid. According to Paul Latimer book:” A person who makes a payment under a mistake of law may be able to recover that payment by restitution”.
Even though they were within one court system, both establishments were dealing with cases in their own individual ways. In the case of Patel v Ali , it was evident that equity exercises discretion, nonetheless this can be questionable. The differentiation between common law and equity is shown clearly in this case within the remedy that was offered, as mentioned before equitable remedy is discretionary whereas common law does not. The common law remedy proposed to Patel was to pay damages; due to the dilemma she was in had created unfairness, so using equitable remedies (specific performance) would have failed. “A trust is an equitable obligation binding a person (trustee) to deal with property over which he has control for the benefit of persons (beneficiary)…” .
First we need to know as what arbitration means, provisions of the year 1996 portrays that it is a procedural law. “It is a procedure in which a dispute is submitted by agreement of the parties, to one or more arbitrators who make a binding decision on the parties of dispute. In choosing arbitration the parties opt for a private dispute resolution procedure instead of going to a court.” There are two important things necessary for Arbitration- Consent and Agreement: If there is an agreement, only then the court can intervene. Consent merely means parties agreeing with the terms and conditions of the Contract. Award is binding on both the parties.
It is illegal method of contracting as the falsification statement influence the decision of another party (van Erp, 2013). Common law does not permit that kind of practices. Party that suffers from the misrepresentation can rescind the contract or may claim damages. There are many ways to misrepresent the fact of contract (Stone & Stone, 2011). To establish misrepresentation under the act one need to keep in mind following limitations.
The formation of a contract is often preceded by a series of negotiations between the parties. Some of the statements made may later turn out to be false. Weitzenböck (2012) defined in English contract law, misrepresentation are a false statement of fact that made by one party to another party, which was intended and did induce latter to enter into the contract. If it happens to be the untrue statement, thus the party who has been misrepresented may claim damages for breach of contract or as for misrepresentation, the remedy of a recession may be available to the innocent party. On the subject of Thurston Binns circumstances, it indicated that Thurston could argue that Peter had misrepresented to him the actual contract formed.