lecture 7

Question 1

void contract

Answer 1

never a contract in the first place

Question 2

voidable contract

Answer 2

an innocent party can choose whether or not to end the contract

Question 3

misrepresentation

Answer 3

renders the contract voidable

Question 4

mistake

Answer 4

renders the contract void

Question 5

duress and undue influence

Answer 5

renders the contract voidable

Question 6

illegality

Answer 6

renders the contract void

Question 7

for misrepresentation to be actionable:

Answer 7

must be an untrue statement
must be statement of fact, not opinion
must have induced the innocent party to enter contract

Question 8

Spice Girls Ltd v Aprilla World Service BV

Answer 8

SG sued for counter damages of misrepresentation as a member left after signing contract. Misrepresentation by conduct

Question 9

With v O’Flanagan

Answer 9

Keeping silent about change in circumstances can amount to misrepresentation

Question 10

Dimmock v Hallett

Answer 10

if one party makes a statement which itself is true, but which represents the whole situation because of what is left unsaid, this is misrepresentation

Question 11

Fletcher v Krell

Answer 11

seller not expected to volunteer information which may put the buyer off

Question 12

exceptions to buyer beware rule

Answer 12

contracts of utmost good faith - insurance, sale of shares, sale of land and solicitors

Question 13

UTR 2009

Answer 13

consumer protection - illegal for retail trader to mislead consumer by failing to give info

Question 14

Derry v Peek

Answer 14

fraudulent misrepresentation case

Question 15

Negligent misrep

Answer 15

false statement made by person who believes it to be true but has no reasonable grounds

Question 16

wholly innocent misrep

Answer 16

false statement made believing it to be true

Question 17

remedies for misrep

Answer 17

innocent - at discretion of court or damages
negligent - damages or negligence in tort
fraudulent - damages for tort of deceit

Question 18

Rescission

Answer 18

equitable remedy designed to restore parties to pre contractual position

Question 19

bars to recession

Answer 19

affirmation - innocent party had full knowledge of misrep
lapse of time - unreasonable amount of time passed
impossible to return to pre contract position
third party acquired rights