Leb.pp.14(capacity)

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Unformatted text preview: aud fraud Fraud Sarvis v. Vermont State Colleges P lied, told half-truths (partial disclosure, efforts to limit inquiries) = fraud Misrepresentation during hiring process (resume fraud) is basis for rescission of employment contract Fraud Fraud Silence usually not fraud not Exceptions: fair dealing requires disclosure Exceptions fair (1) Latent Defect Latent Ex: Hidden danger known to seller, seller, who actively conceals danger (2) Trust & Confidence Trust Ex: Fiduciary relationship Ex: (partners, corporate officer & shareholders) Fraud Fraud Exceptions: fair dealing requires disclosure (3) Superior Knowledge (3) Superior One party has knowledge not One within reasonable reach of other party party (4) Change in Facts (4) Change Known only to one party Fraud Fraud Exceptions: fair dealing requires disclosure (5) Sale of Realty (5) Sale Stambovsky v. Ackley Stambovsky Buyer beware, but P wins on Buyer estoppel theory (rescind contract estoppel for sale of house with ghost) for Fraud River & Beach Land Corp v. O’Donnell Buyer wins Buyer Mass. Mutual Ins. Co. v. Manzo Insurance company wins (can rescind policy, does not have to pay): fraud in the inducement inducement Innocent Misrepresentation Innocent Similar to fraud, except that person making statement honestly and reasonably believes statement to be true reasonably Mistake Mistake Bilateral (Mutual) Mistake 1. Existence of subject matter 1. Existe...
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This note was uploaded on 01/28/2013 for the course LEB 03205 taught by Professor Pederson during the Spring '11 term at University of Texas at Austin.

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