Define: Correi Credendi

Correi Credendi is a legal principle that refers to the belief that a person has the right to rely on the representations made by another party.

The purpose of Correi Credendi is to protect parties who rely on the representations made by others in a transaction.

Correi Credendi applies in contract law when one party makes a representation to another party, and the other party relies on that representation in entering into the contract.

Caveat emptor is a legal principle that means “buyer beware,” while Correi Credendi means “the right to rely on representations.” The difference is that caveat emptor places the burden of verifying the accuracy of representations on the buyer, while Correi Credendi places the burden on the party making the representations.

The standard of proof for Correi Credendi is a preponderance of the evidence, meaning that the party asserting the right to rely on representations must show that it is more likely than not that the representations were made and relied upon.

The elements of a Correi Credendi claim are: (1) a representation was made, (2) the representation was made by a party with superior knowledge or expertise, (3) the representation was made to induce the other party to act, and (4) the other party relied on the representation in acting.

Correi Credendi can be waived if the parties agree to waive it in the contract or if the party asserting the right to rely on representations has knowledge that the representations are false or misleading.

The statute of limitations for a Correi Credendi claim varies by jurisdiction, but is typically between two and six years from the date of the transaction.

To protect yourself from a Correi Credendi claim, be careful not to make false or misleading representations, and be sure to disclose any material information that could affect the other party’s decision to enter into the transaction.