Misrepresentation and Duress in Contractual Transactions

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Introduction Transactions play a big role in civil law. As million bargains are made daily in the world. So, people daily conclude bargains on the basis of which sell them goods, render services, perform works. Also it proceeds during all human life - from the birth to the death. To enter in a contract, parties have to give a consent to it. Unfortunately, not all bargains are concluded at the request of the parties, such bargains are illegal, because the parties (or party) did not give genuine or real assent. Such bargains are made because of mistakes, misrepresentations, duress and undue influence. In this essay, I will consider two types of misconduct are misrepresentation and duress. The research work consists of: introduction, two headings, …show more content…

A person will he liable for fraud if he makes a statement which he knows to be false, or he has no belief in its truth or he is reckless, careless whether it is true or false. For example, Dantzler makes a statement to the ABC Credit Rating Company about his financial condition that he knows is untrue. Dantzler realizes that ABC will publish this information for its subscribers. Marchetti, a subscriber, receives the published information. Relying on that information, Marchetti is induced to make a contract to lend money to Dantzler. Dantzler’s statement is a fraudulent misrepresentation, and the contract is voidable by …show more content…

For example, a real estate broker tries to sell a house to a buyer, who stresses his need for peace and quiet. The broker promises that the house is very quiet. In reality, the house next door is undergoing a very noisy reconstruction. Although the broker did not know this, her promise that the house was quiet was made without her having any reason to believe that that was the case. She simply assumed it. This would be a negligent misrepresentation (had she known about the construction and lied about it, however, that would be a much more serious fraudulent misrepresentation). Thus, English law recognize three kinds of misrepresentation. However, In UAE law a situation a bit different. According to the article 185 of UAE Civil Code: “Misrepresentation is when one of the two contracting parties deceives the other by fraudulent means by word or act which leads the other to consent to what he would not otherwise have consented to”. The definition represents that UAE law recognize only fraudulent misrepresentation, as in this misconduct must involve intention and purposeful action or inaction. Hence, two types of misrepresentation such as innocent and negligent are not recognized by UAE

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