Misrepresentation Flashcards
What are the requirements for a misrepresentation? (5)
A statement of material fact Made by one party to another During the negotiations Main reason/inducement for contract Statement is false
Types of misrepresentation and remedies for them?
Fraudulent-damages and rescission
Negligent-damages and rescission
Innocent-rescission or equitable damages when necessary to restore party back to original position
Fraudulent misrepresentation and case
Fraud must be proved. One party makes false statement and is aware it is false. Uses balance of probabilities.
Derry v Peak
Bisset v Wilkinson
Land could hold 2000 sheep. Held:an honest opinion not a material fact
Peyman v Lanjani
made by one party to another
3rd party told incorrect info, so contract was ended as not told misrepresentation
Roscoria v Thomas
During the formation of the contract-can’t be after
Attwood v Small
Acted as an inducement-he used his own experts so didnt rely on info
Couchman v Hill
Statement was false-was told heifer was unserved. It gave birth and died-a misrep
Negligent Misrepresentation
Hedley Byrne
Hedley Byrne criteria
Damages recovered where there is a special relationship.
3 requirements
- Party making statement is in possesion of knowledge for which advice is required
- Sufficient proximity to rely on statement
- Other party is aware of the reliance
Innocent Misrepresentation
Innocent if statement has an honest belief in truth.
Damages for types of misrep
Fraudulent/Negligent-damages under tort of deceit/negligence and also under S2(1) Misrep Act. Rescission also available
Innocent-rescission or equitable damages to recover position if needed
S3
Can include exclusion clauses to exclude liability from misrepresentation
