Can You Cancel a Contract if you based your decision on information you later found out was false?
Even if you’ve passed a grace period or no grace period is given?
While it is ideal for both parties to a contract are acting in good faith and providing accurate information, there are times when one or both parties are not truthful. Most commonly such talk is called “puffery” or exaggeration. When this happens, it is typically categorized as opinion. Such as, “This is the best car I’ve ever driven.” However, there are a few elements looked at when determining whether misinformation is in fact puffery or something more significant.
One of these elements is whether the information was major or minor. Another element is whether one would believe that the information was realistic. For example, if one is selling a lawn mower and it has no cutting blade it would be unrealistic for a buyer to think that it works perfectly in its current condition without needing parts.
In addition, another element the courts look at when determining whether a contract is void for misinformation is whether the information given was depended on by the party and that the party made their decision based on that information. For example, if a person is buying a bike in order to get back and forth to school and expresses to the seller that they need the bike for this reason and cannot afford to put more money into repairs and the seller represents to the buyer that the bike is reliable, will not give them trouble, and will suit their needs.
There are other things that a court would look at when evaluating a contractual situation, and there is no way to determine which element one would weigh more important. However, if you find yourself in a situation where you signed a contract based on particular information and then discovered the information was incorrect, seek the advice of an attorney that works with contracts in your jurisdiction.