CONTRACT LAW L4 - Misrepresentation - CATEGORIES Flashcards
How did the MA 1967 affect categories of misrepresentation? (4)
It brought about important changes to the categories of misrepresentation which are available today. These are fraudulent (tort or deceit), negligent (statutory claim under S2(1) of the MA 1967) and innocent (also a statutory claim under S2(1) of the MA 1967).
Who is the burden of proof on in proving fraudulent misrepresentation? (2)
The claimant and it is a difficult burden to discharge It is more difficult to persuade a court that a defendant has done something fraudulent than for example negligent.
What was recklessness defined as in THOMAS WITTER LTD V TBP INDUSTRIES LTD 1996? (1)
The level of recklessness required was a ‘flagrant disregard for the truth.’
When will the defendant be liable for negligent misrepresentation under S2(1) MA 1967? (2)
Unless they can prove that they had reasonable grounds to believe, and did believe up to the time the contract was made that the statement was true.
What will happen where the representor is found liable for a negligent misrepresentation? (1)
They will be treated to all intents and purposes as if they had made a fraudulent misrepresentation.
What is an innocent misrepresentation under S2(1) of MA 1967? (1)
A innocent misrepresentation is one which is not made fraudulently or negligently.
How can a representor prove that they made an innocent misrepresentation? (2)
If they can prove that they had reasonable grounds for belief in the truth of their statement and proves that they believed up to the time of the contract that what they were saying was true.
