Effect of Misrepresentation Flashcards
Long v Lloyd
Lorry was sold on the premise that it was in excellent condition, it was not, seller offered to pay half of the repair costs, buyer accepted affirming the contract. When the lorry later broke down he could not then rescind the contract, election of affirmation is irrevocable.
Clarke v Dickson
Shares in a mine, contract could not be rescinded as once mined, the materials could not be put back into the earth.
Leaf v International Galleries
Rescission can be barred due to lapse of time
Phillips v Brooks
Rogue buyer cases - if rights to property have passed on to third party the property cannot be recovered.
Derry v Peek
Defendants honestly believed statement, no fraudulent mishap.
Doyle v Olby
Damages in contract are limited to those that are reasonably foreseeable, tort is not so limited, defendant should make reparation for all actual damages.
Hedley Byrne v Heller
Damages can be granted for negligent misstatement where (1) representor owed duty of care, (2) the duty was negligently breached, and (3) the breach caused foreseeable loss.
Howard Marine and Dredging v Ogden and Sons
2 documents made different claims about capacity of barge, owner was liable for misrepresentation for stating the capacity listed in one document as he had no reasonable grounds for believing it as opposed to the second document.
Royscott Trust v Rogerson
Court held that under s2(1) damages are calculated like damages in tort, not damages in contract law.
William Sindall v Cambridge County Council
Obiter Dicta said that they would have awarded damages under s2(2) instead of rescission.
Car and Universal Finance v Caldwell
C sold his car to a rogue, cheque used to pay bounced. He contacted the police and the AA in an effort to recover the car. The rogue sold the car on but C had done all he could to communicate rescission before this sale, so it was not valid.
