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CHAPTER 14 Materiality and inducement

Good Faith and Insurance Contracts

Page 441


Materiality and inducement

The general law requirements

14.01 Relief for misrepresentation at law or in equity will be had if it can be proved that the representee was induced to enter into the contract – any type of contract – by virtue of that misrepresentation. The representee must rely1 on the truth of the representation in making his decision to contract with the representor. This statement is beyond dispute.2 Further, the fact that the impugned representation was only one of a number of factors that played upon the mind of the representee in inducing him to enter into the contract will not disentitle him from seeking relief, provided that the misrepresentation in fact influenced his decision.3

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