#CL- Vitiating factors

Question 1

what is a vitiating factor

Answer 1

something which makes contract voidable if claimant wishes to

Question 2

what are the two types of vitiating factor we study

Answer 2

economic duress

misrepresentation

Question 3

what is misrepresentation

Answer 3

when someone wouldn’t have entered if they understood truth

Question 4

what are the remedies for misrepresentation

Answer 4

main is recision- sets claimant to original position

unavailable when unable to reset, 3rd party was involved, there was a delay or contract affirmed or continued

Question 5

what did misrepresentation act 1967 do

Answer 5

allow for damages as compensation when there is misrepresentation

Question 6

what are the 4 things which must be proven to show misrepresentation

Answer 6

false statement
material fact
made by party involved in contract
designed intended to induce c into contract

Question 7

what can a false statement be

Answer 7

not updating facts 
half truths
duty to tell (ie insurance)
conduct 
CPAR rules

Question 8

fletcher v krell

Answer 8

she had not been asked about marital status to didn’t have a duty to disclose- not false statement

Question 9

With v O’Flanagan

Answer 9

Doctor doesn’t update profits when selling surgery so held to be false statement

Question 10

Dimmock v Hallett

Answer 10

held that this was a half truth as the seller did not tell the buyer that all the tenants would be leaving soon

Question 11

Tate v Williamson

Answer 11

advisor told to client to sell his land for cheaper to clear debts when it was in-fact so the advisor could buy it for cheaper- held to be misrepresentation.

Question 12

Lambert v Co-Operative insurance

Answer 12

woman did not tell her insurance company about her husbands recent theft conviction- this was held to be misrepresentation

Question 13

spice girls ltd v Aprilla world service

Answer 13

spice girls done advert but did not say that geri was leaving. this mad the advert useless. false statement was through the spice girls conduct.

Question 14

what must be a material fact be

Answer 14

must not be opinion and it is more important if the person is knowledgeable

Question 15

Bisset v Wilkinson

Answer 15

person selling land is asked about how many sheep it would hold. he doesn’t have knowledge and guesses- not material fact as it was opinion

Question 16

Edington v Fitzmaurice

Answer 16

company lied about what it was doing with its money- held to be misrepresentation.

Question 17

what does made by party to contract mean

Answer 17

made by person involved in contract.

Question 18

what must the false statement be

Answer 18

must induce person to enter a contract, claimant must have relied on the statement.

Question 19

attwood v small

Answer 19

miner makes false statement about earnings of a mine- surveryor confirmed this incorrectly. not misrepresentation as D had relied on surveryor not miner

Question 20

Redgrave v Hurd

Answer 20

relied on sellers accounts when buying solicitor practice, this was misrepresentation.

Question 21

Museprime properties ltd v Adhill properties ltd

Answer 21

reliance on statements to be true so it was misrepresentation.

Question 22

what are the three types of misrepresentation

Answer 22

fraudulent
negligent
innocent

Question 23

What is fraudulent misrepresentation and what is the remedy

Answer 23

Intentional or reckless with the truth

Recission and/or damages under tort of deceipt

Question 24

What is negligent misrepresentation and it’s remedy

Answer 24

Fell below expected standard ( someone’s job )

Recission and/or damages under tier of negligent misstatement

Question 25

What is innocent misrepresentation and what remedies are there

Answer 25

D believed it was true

Recission or damages

Question 26

Clarke v Dickinson

Answer 26

Recission not available as couldn’t return to original position

Question 27

Long v Lloyd

Answer 27

By using lorry after its breakdown. He indicated willingness to continue the contract

Question 28

Leaf v international galleries

Answer 28

Even though he did not know the truth, there was a delay so not allowed to claim

Question 29

Lewis v averay

Answer 29

Claim for recission not allowed as it would be unfair to take the car off third party

Question 30

Howard marine v Ogden and sons

Answer 30

Not innocent, it was negligent because they had the registration with the right details on

Question 31

Derry v peek

Answer 31

Careless to whether what they said was true so it was not fradulent

Question 32

What is economic duress

Answer 32

Wouldn’t have entered contract without pressure or coercion to financial situation

Question 33

What is the main remedy in economic duress

Answer 33

Restitution d has to give C back any money or property. Avoids future obligations
Not damages

Question 34

What must C prove for economic duress

Answer 34

Lack of choice
Illegitimate threat
Significant cause to entering contract

Question 35

What case set up the indicators for lack of choice

Answer 35

Pao on v Lau Yiu Long

Question 36

What are the pao on indicators

Answer 36

Protest
No option out
Independent advice
Tried to escape

Question 37

What does illegitimate threat mean

Answer 37

Not necessarily unlawful, more then rough business dealings, improper threat

Question 38

What must ED be

Answer 38

Significant cause to entering a contract

Question 39

Atlas v kafco

Answer 39

Ed was allowed for non delivery of goods

Question 40

CTN cash and carry v Gallagher

Answer 40

Threat to withdraw credit faculty lawful threat so not economic duress