REPRESENTATION
A
statement made by one party to the other before, or at the time of
the contract with regard to some existing fact or to some past event
and which is one of the causes to induce the contract.
AUCTION
EXAMPLE
A
purchaser at an auction may claim a contract between with the
auctioneer based on representations made by the auctioneer at the
auctioneer. Therefore, a contract can be established that is
different from the written contract. This is known as a collateral
contract
.
Even if the written contract remains, the purchaser may be able to
take action against the auctioneer for damages suffered as a result
of the
misrepresentation.
See
puffing
warranty