In circumstances where one party provides only partial information to the other side during negotiations to induce that party to enter into contractual obligations, the contract will likely be enforced by the courts despite the misrepresentation of relevant facts.

Question

Quizplus · Accepted Answer

If one party provides only partial information to induce another party to enter into a contract, and the other party relies on that information, it can constitute a form of misrepresentation known as fraudulent misrepresentation. Courts may consider this a breach of the duty of good faith and fair dealing in contract law, making the contract unenforceable. Therefore, the statement presented in the question is false.

In Circumstances Where One Party Provides Only Partial Information to the Other