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Business Law
Issue: The issue in this problem have 4 problems. This is whether or not there is fraudulent misrepresentation. And whether or not there is the legal contract. At the same time, whether or not the oral evidence rule it included. And it have whether or not the consumer guarantee.
Rule- Fraudulent misrepresentation
Fraudulent misrepresentation occurs when one makes representation with intent to deceive and with the knowledge that it is false. According to Andy and Douglas1 .An action for fraudulent misrepresentation allows for a remedy of damages and rescission. One can also sue for fraudulent misrepresentation in a tort action. Andy and Douglas2 states that fraudulent misrepresentation is capable of being made recklessly. And where false information is provided with knowledge, or the persons preparing the information were reckless as to its truth or falsity, the deceived party will have a remedy in damages in the tort of deceit. The fraudulent misrepresentation must be established this elements: 1) there must be a false statement of fact, not opinion, unless the person making statement did not hold that opinion. The statement may be written .oral or by the conduct. While, as a general rule, there is not a positive obligation on a person to disclose facts, exceptions to this rule included contracts of utmost good faith, statement which are only partially true or distort the truth, and the statement which are true at the time of making but change before the contract is entered into. There must be a false statement of fact or law as oppose to opinion or estimate of future events in the case of Bisset v Wilkinson3. At the same time the representation must be untrue. And the person making the representation must know that it is false, or not believe in its truth, or be recklessly careless. And the representation must be made with the intention that the other party acts in reliance on it; and the statement must actually deceive the innocent party- that is, is must be

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