Chapter 4 PT 3

Question 1

There are no remedies for negligent misrepresentation

Answer 1

1) Set aside the contract
2) Enforce the contract
3) Claim damages if loss is suffered

Question 2

Innocent misrepresentation

Answer 2

1) Representation of false fact made innocently, which was believed by the
representee and was one of the factors inducing him to contract.
2) Renders contract voidable

Question 3

Banda and another v van der spuy

Answer 3

1) Appeal upheld with costs.
2) Order of high court set aside

Question 4

Intentional fraudulent misrepresentation

Answer 4

1) Made without honest belief in its
truth and intended that it be acted upon

Question 5

In the legal sense actionable misrepresentation does not induce a mistake.

Answer 5

All actionable misrepresentations induce a ‘mistake in the legal sense of a
misrepresentation since the representee has no grounds for complaint if he or she
was not misled by the false statement.

Question 6

A parties consent to a contract based on a mistaken belief is enough voidable
the contract

Answer 6

1) A party’s consent to a contract based on a mistaken belief is not enough to
nullify the contract.
2) However, if this mistaken belief was induced by the other party’s misrepresentation, the contract is voidable

Question 7

If the mistake induced by a misrepresentation is material the contract is then enforceable

Answer 7

1) If the mistake induced by misrepresentation is material, the contract is void from the start due to lack of consensus, assuming the error is ‘iustus’
(justifiable)

Question 8

Failure to draw attention to an exclusion clause in the contract when there is a
duty to do so is a misrepresentation by silence this can make the other parties
mistake about the contracts content iustus

Answer 8

Not drawing the other party’s attention to an exclusion clause in the
contract, when there’s a duty to do so, is a misrepresentation by silence.
This can make the other party’s mistake about the contract contents
‘iustus’