Contract Law - Vitiating Factors Cases Flashcards
Misrepresentation - There is no obligation on a person wishing to enter a contract to make any statement about what is being offered, but anything said in that respect must be true.
Fletcher v Krell
Misrepresentation - once a statement has been made, even if it is true when made, it can become a misrepresentation if it becomes false before the contract is made. Person must correct the info where the situation has changed between making the representation and the acceptance of the offer.
With v O’Flanagan
Misrepresentation - half-truths can be misrepresentations. The maker of the statement has a duty to reveal the whole truth of the situation.
Dimmock v Hallett
Misrepresentation - where the relationship between the parties is based on trust, then silence may be a misrepresentation.
Tate v Williamson
Misrepresentation - where a contract is a contract of ‘utmost good faith’ (uberrimae fidei) then all material facts must be disclosed whether asked about or not. This is most commonly seen in contracts of insurance.
Lambert v Co-operative Insurance Society
Misrepresentation - the statements doesn’t have to be written or verbal. It could be anything that would influence the other’s decision.
Spice Girls Ltd v Aprilia World Service BV
Misrepresentaion - IT must be a statement of fact rather than a statement of opinion.
Bisset v Wilkinson
Misrepresentation - The party must have relied on the statement. Whether the reasonable person would/n’t have is irrelevant.
Museprime Properties Ltd v Adhill Properties Ltd
Negligent Misrepresentation under the MA 1967 - one the V has proved there was a misrepresentation the burden of proof is then on the person making the statement that there were reasonable grounds to believe the statement was true.
Howard Marine v Ogden & Sons
Fraudulent Misrepresentation - is when there is a statement which the person making the representation knows to be untrue, or is reckless as to whether or not it is true.
Derry v Peek
Remedies For Innocent Misrepresentation - Affirmation is where the innocent party decides to carry on with the contract despite being aware of the misrepresentation. The right to seek to rescind the contract is then lost.
Long v Lloyd
Economic Duress - there was illegitimate pressure in this case as well.
Atlas Express v Kafco
Economic Duress - set out the following factors to help decide whether it was present: (1) Did the person claiming to be coerced protest about the pressure, (2) did that person have any other available course of action that was reasonable, (3) was he independently advised before taking the action, (4) after entering into the contract, did he take steps to make it void.
Pao on v Lau yiu Long
Economic Duress - pressure could be illegitimate even when lawful.
Progress Bulk Carriers Ltd v Tube City
