Different types of misrepresentation

Question 1

Innocent misrepresentation

Answer 1

Genuinely held on reasonable grounds, person making contract believed it to be true

Question 2

Negligent misrepresentation

Answer 2

False statement made by a person who had no reasonable grounds for believing it to be true

Question 3

Misrepresentation act 1967

Answer 3

S2.1 Misrepresentation Act
statutory liability for negligent misrepresentation, does not require there to be special relationship between parties

Question 4

Howard Marine v Ogden & Sons

Answer 4

Act is preferable for the victim to use than the Headley Brine Principle

(Ogden hired 2 dredgers, stated capacity was 850 m³, was incorrect, lot lower.
Took much longer, cost more to perform,
document had correct capacity)
-

Question 5

Fraudulent misrepresentation

Answer 5

statement which the person making the representation knows to be untrue, or is reckless

Question 6

Derry v Peek - Fraudulent misrepresentation

Answer 6

(Company did not obtain consent to use trams, company shares dropped and valued. Purchasers of shares sued for losses)
- No fraudulent misrepresentation, directors careless whether what they said was true

Question 7

Greenridge Luton One Ltd v Kempton Investments Ltd

Answer 7

Fraudulent mispresentation can be overly rose tinted view of position
(buy of commercial property entitled to return of deposit, relied on untrue representation)
- Fraudulent Misrepresentation