Fraudulent Misrepresentation
- An intentional misrepresentation of facts can make a contract VOIDABLE.
- Lies = Voidable
- Ex. Mark knew the painting he was trying to sell was a Julie Monet painting and not a Claude Monet painting, but he lied and told the buyer that it was a Claude Monet painting.
Unintentional Misrepresentation
- Expressing opinions or salesman puffery (salesman phrases “best” “finest”) does NOT make contract voidable.
- However, a mistake made in an offer could make a contract VOIDABLE:
- Must tell material untruth that induces a party into a contract.
- Concrete/tangible
- Must have reasonable reliance on the untruth
- Must tell material untruth that induces a party into a contract.
No general duty to disclose
- A product sold “As Is” does not require disclosure.
- Missing parts, faulty wiring not required
- However, real estate differs:
- Certain things must be disclosed for real estate
- Mold, damage, etc.
- Certain things must be disclosed for real estate
- Possible argument: Special relationship and/or vastly superior knowledge entail a duty to disclose because of lack of economic efficiency (to investigate product)