Business law Assignment Example | Topics and Well Written Essays - 500 words - 2

Business law - As shrinkment ExampleThese financial crises led to privatization of banks in Iceland as well as the latters deregulation in the year 2000 following the bankruptcy of Lehman Brothers and the adjourn of AIG.According to this film, corruption violated a number of rules of law. An example of a rule of law that was violated by corruption is misrepresentation. Misrepresentation refers to untrue bidding of law or fact that induces a representee to sign a contract (Adamson 130). Representation occurs when the statement is made on the course of signing the contract, but if the statement turns out to be false, misrepresentation occurs. The three types of misrepresentation include negligent misrepresentation, fraudulent misrepresentation, and innocent misrepresentation. The baptismal font of the financial service industry entering the contract with Iceland is classed under fraudulent misrepresentation.Some criteria must be satisfied in order to make out to an actionable misr epresentation first, there must be foundation of a false statement of law or facts rather than an estimate of a in store(predicate) effect or an opinion. If the representer is in a position to know the facts, a statement of opinion may substance to actionable misrepresentation. Consequently, unless the representer did not intend to carry out the stated intent, a statement of a future intent cannot amount to an actionable misrepresentation. False statement of law and silence will not amount to actionable misrepresentation. After the verification of a false statement, it is vital for the representee to explain how the untrue statement bring on/relied on him/her to enter a contract. Lack of awareness of the false statement by the representee can go away to no reliance or inducement.Another element of misrepresentation is disclosure duty with an example of the movement summary of Turner versus Green (1895). This element discourages the act of duty to disclose facts, which would a ffect the decisions of the other party, reservation him/her not to enter a