Principles of Business Law Past Paper PDF 2024
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2024
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Summary
This document provides lecture notes on Principles of Business Law, specifically covering topic 8: Vitiating Factors and Misrepresentation. It includes case studies like Alati v Kruger and discusses concepts such as misrepresentation, inducing contract, and contract rescission. Topics are clearly presented via slides.
Full Transcript
Principles of Business Law Semester 2 2024 TOPIC 8: VITIATING FACTORS MISREPRESENTATION Misrepresentation: Overview A representation is a statement of fact. recall video 5.4. If the representation is false, it is called a ‘misrepresentation’. If a misrepresentation induce...
Principles of Business Law Semester 2 2024 TOPIC 8: VITIATING FACTORS MISREPRESENTATION Misrepresentation: Overview A representation is a statement of fact. recall video 5.4. If the representation is false, it is called a ‘misrepresentation’. If a misrepresentation induces entry into a contract, the contract may be set aside. The right to set a contract aside on the basis of misrepresentation can be lost if the innocent party affirms the contract. recall video 8.1. Misrepresentation: Alati v Kruger FPBCL p 302 Facts A told K that A’s business made sales of £100 per week (on average). K, relying on this information, agreed to purchase A’s business. K later discovered that the statement about the average weekly takings was false. K sought to avoid the contract on the basis of the misrepresentation made by A about the average weekly takings. Issue Was K entitled to avoid the contract? Misrepresentation: Alati v Kruger (ctd) Decision K could avoid the contract. Reason The representation made by A as to the takings of the business was false. The false representation induced K to enter into the contract. K had not affirmed the contract. Thus, K was entitled to rescind the contract.
