Misrepresentation

Question 1

What happens if a party is encouraged to enter a contract because of factual statements which later turn out to be untrue.

Answer 1

Then the misrepresentation may provide a remedy to the injured party

Question 2

What is the case for an example of an ‘untrue statement’?

Answer 2

Inntrepreneur Estates v Holland

Question 3

Inntrepreneur Estates v Holland - What are the three things a misrepresentation cannot be? 1

Answer 3

A mere opinion - Bissett v Wilkinson

Question 4

What is a misrepresentation?

Answer 4

A false statement of material fact

Question 5

Inntrepreneur Estates v Holland - What are the three things a misrepresentation cannot be? 2

Answer 5

An expression of future intent - Edgington v Fitzmaurice

Question 6

Inntrepreneur Estates v Holland - What are the three things a misrepresentation cannot be? 3

Answer 6

A mere trade puff - Carlill v Carbolic Smoke Ball Co.

Question 7

When can a misrepresentation be made?

Answer 7

At or before the time of the agreement.

Question 8

Can a misrepresentation arise from conduct rather than from a verbal or written statement?

Answer 8

Yes - Spice Girls v Aprilia World Service

Question 9

Can misrepresentation arise from mere silence?

Answer 9

No - Hamilton v Allied Domecq

Question 10

Can a statement made after the formation be actionable?

Answer 10

No - Roscorla v Thomas

Question 11

What are the three types of misrepresentation? (1)

Answer 11

Fraudulent misrepresentation - statement made knowingly or deliberately, or being reckless as to whether it is true or not - Derry v Peek

Question 12

What are the three types of misrepresentation? (2)

Answer 12

Negligent misrepresentation - can be actioned at common law where the loss is financial. - Hedley Byrne v Heller and Partners

Question 13

When will liability arise for negligent misrepresentation?

Answer 13

When there is a special relationship and the party making the statement owes a duty of care to the other party.

Question 14

What does section 2(1) of the Misrepresentation Act 1967 allow an action for?

Answer 14

Where a misrepresentation is made and a loss occurs as a result of relying on the misrepresentation.

Question 15

When does section 2(1) not work?

Answer 15

When they can show they had reasonable grounds to believe the statement.

Question 16

What are the three types of misrepresentation? (3)

Answer 16

Innocent misrepresentation - Damages awarded if other party makes innocent misrepresentation which later turns out to be false s 2(2)