THE BUSINESS SCHOOL

CENTRE FOR LEGAL AND ADMINISTRATIVE STUDIES

ASSIGNMENT COVER SHEET
Contracts Group Assignment

COURSE NAME Torts and Contracts

COURSE CODE + SECTION PRLG 704 001/022
SEMESTER F21
PROFESSOR’S NAME Teresa Galle
MARKS ALLOTED 16
WEIGHTING 15%
DATE ASSIGNED November 23, 2021
DATE DUE December 3, 3021
DATE MARKS TO BE
Within one week of due date
RETURNED
1. Aditya Desai
2. Ashmeet Singh (Sec.002)
STUDENT NAME 3. Palak Kharbanda
4. Shiffali
5. Rijul Chauhan
1. 301093833
2. 301146818
STUDENT NUMBER 3. 301179971
4. 301176111
5. 301217466

READ ALL INSTRUCTIONS CAREFULLY

Please see attached instructions

FORMAT REQUIREMENTS:
and rubric
PAGE LENGTH 2
SPACING Double
FONT Calibri 11
CITATION STYLE

0
Assignment Requirements:

2 pages maximum double spaced, font 11 with correct

grammar and sentence structure. Marks will be deducted for
errors.

Proper legal terminology and citations to support your

arguments.

Please include a cover sheet with ALL GROUP MEMBER NAMES

and student number.

To be handed in December 3, 2021 IN CLASS. Paper copy.

Give proper credit to all sources used:

Minimum 1(one) Canadian case as current as possible.  Explain

why you used the case to support your answer.

RUBRIC: (marks are determined by):

Validity of the answer: Definition of Misrepresentation (3),

Anaysis of Scott’s Three Statements (3 marks each).
Total /12

Case law / 3

Assignment Format /1

Assignment Total   / 16

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MISREPRESENTATION DEFINITION

According to common law jurisdiction, misrepresentation is an untrue or misleading statement of

fact or law made during transacting/negotiation by one party to another, the false statement made

induces that other party to enter into a contract. The innocent party may normally rescind the

contract, and sometimes may be awarded damages or both recission and damages.

Misrepresentation is of majorly three types:

1.Fraudulent misrepresentation

2. Innocent misrepresentation

3. Negligent misrepresentation

The first thing that Scott told was that bike was of latest 2020 trek model, instead it was 2018 model

which was a false statement of facts made during the transaction. Another statement made by Scott

was that “This bike is comfortable”, however that was innocent statement. The third statement

made by Scott that there is no law requiring front lights on bike was misleading and untrue

statement of law, which resulted in fraudulent misrepresentation.

WHETHER THE THREE STATEMENTS MADE BY SCOTT LEADS TO MISREPRESENTATION?

First and foremost, the seller Scott informs that the bike is the latest 2020 Trek model. It is

imperative to state that this statement is nothing but fraudulent misrepresentation of the fact that

the bike is 2018 Trek model. This in turn, has resulted in material representation and the victim has

the remedy to void the contract altogether and can apply for recission of the contract.

Furthermore, the seller asserted that the bike is comfortable, and the buyer would love it, which is

an opinion. This resulted in opinion misrepresentation committed by the seller. In such a situation,

the remedy available to the victim is that he/she can apply for the recission of the contract.

Lastly, the seller specifically mentioned that the there is no front light, albeit there is no law

requiring there to be a front light on bikes. This contributed to negligent misrepresentation and

2
partial mistake committed by the seller. The victim has a right to seek remedy under Tort law and

can claim for damages from the seller because of the mistake committed by him.

CASE LAW

In the case cited Mariani v. Lemstra (2004), 246 D.L.R. (4th) 489, 27 CCLT(3d) 261(Ont. C.A.)

elements of fraudulent misrepresentation were stated by the Court as follows:

(i) The defendant makes a false representation of fact.

(ii) The defendant knows the statement is untrue or is careless as to its truth.

(iii) The defendant makes the representation with the intention that it would be acted upon by the

plaintiff.

(iv) The plaintiff relies upon the statement.

(v) The plaintiff suffers damages as a result.

In the present scenario, Scott had fraudulently misrepresented the facts about the bike, and I have

relied upon the statements, because of which I had suffered damages. The case law cited above has

the similar facts where the defendant made false statement and the plaintiff relied upon which

resulted in him suffering damages.