Induces the other Party to Enter the Contract

Question 1

what does induces the other party to enter the contract mean?

Answer 1

the statement must lead the other into entering into the contract, it must be a critical part of making the decision

Question 2

Atwood v Small

Answer 2

facts: D sold mines and steelworks to C, making overexaggerated representations about the property. C agreed to buy, verified the statements, but later found them to be false, leading C to seek contract rescission.
principle: using own judgement or information obtained elsewhere will not be misrepresentation

Question 3

Redgrave v Hurd

Answer 3

facts: A solicitor became a partner in a firm, assured of a £300/year income. Despite the opportunity to review the accounts, he took their word for it. It later turned out the income was only £200/year.
principle: the person induced into the contract doesnt have to verify the misrepresented statement

Question 4

Museprime Properties v Adhill Properties

Answer 4

facts: In a property auction, false information about rents and reviews led the plaintiff to buy three properties. After discovering the deception, the plaintiff wanted to cancel the deal, but the defendant argued the misinformation wasn’t important enough to affect a reasonable person’s decision to make the contract.
principle: what the reasonable person would have done is not relevant