Business and Corporation Law

Business and Corporation Law
(Student’s Name)

Part A
Issue
The issue of the case is to check the right of Alex in
against of the vendor, the city of Williamstown and his
lawyer?

• Rules
 In a contract the consent of the parties
should not be influenced by
Misrepresentation.
 Misrepresentation can be understood as
a false statement, which induces the
representee to develop a contract.
 Negligent misrepresentation is a
statement that a party makes without
having proper grounds for belief in its
truth.

• Rules
 Negligent misrepresentation occurs when a
party negligently presents a false statement to
other party and other party believing on such
statement enters into a contract
 For the existence of negligent
misrepresentation, there must be a special
relationship between the parties.
 Further, because of such relationship, the
misrepresentor must owe a fiduciary duty to
misrepresentee.