Law for Business and Personal Use - Assignment Example

The financial service industries are the masterminds of this corruption that occurred in the late 2000s.

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 a misrepresentation. Misrepresentation refers to the untrue statement 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 case of the financial service industry entering the contract with Iceland is classed under fraudulent misrepresentation.   

            Some criteria must be satisfied in order to amount to an actionable misrepresentation; first, there must be the existence of a false statement of law or facts rather than an estimate of a future event or an opinion. If the representer is in a position to know the facts, a statement of opinion may amount 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 statements 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 induced/relied on him/her to enter a contract. Lack of awareness of the false statement by the representee can result in no reliance or inducement.

            Another element of misrepresentation is disclosure duty with an example of the case summary of Turner versus Green (1895). This element discourages the act of duty to disclose facts, which would affect the decisions of the other party, making him/her not to enter a contract if these facts are known. However, four situations can make silence amount to misrepresentation: First, uberrimae fidei contracts, which is a contract of utmost good faith. Second, change of circumstances where a statement, which was true, becomes false due to change in circumstances. Others include half-truths where a party, regardless of making a true statement, is still guilty of misrepresentation due to what they have not said. Some fiduciary relationships and confidentiality can also make one guilty of misrepresentation.

            In the inside job, the victims of corruption are likely to win. This corruption violated fraudulent misrepresentation, which Lord Herschell defines as a statement known to be false. Moreover, all the three major elements of misrepresentation existed in this contract, for instance, the contract between Iceland and the financial service industry. Therefore, the victims are expected to rescind the contract and claim the damages.