Monday, June 5, 2017

Misrepresentations, rescission, and fraudulent inducement.

Practice point:  While mere promissory statements as to what will be done in the future are not actionable, a promise actually was made with a preconceived and undisclosed intention of not performing it constitutes a misrepresentation of a material existing fact upon which an action for rescission may be based.  Such a misrepresentation is collateral to the agreement, and can be the basis of a fraudulent inducement claim.

Case in point:  White v. Davidson, NY Slip Op 04219 (1st Dep.t May 30, 2017)

Here is the decision.

Tomorrow's issue:  Pleading prior written notice of a sidewalk defect.