misrepresentation

Question 1

what are the elements of a claim for misrepresentation?

Answer 1

false statement of fact addressed to the representee before or at the time the contract is formed which induces the other party to enter the contract

Question 2

what does an actionable misrepresentation do to a contract?

Answer 2

renders it voidable

Question 3

what are the requirements for a false statement of fact?

Answer 3

must be fact not opinion.
expert opinion will be taken as fact.
if a person says they intend to use money for one thing and use it for something else this will be a misrepresentation.
silence does not give rise to a misrepresentation?

Question 4

what are the exceptions to the rule that silence does not give rise to a misrepresentation?

Answer 4

the truth but not the whole truth, contracts of the utmost good faith, some fiduciary relationships give rise to a duty to disclose key facts, change of circumstances

Question 5

what are the requirements for the statement inducing the claimant to enter the contract?

Answer 5

statement must have been material and actually be relied on.
did it play a real and substantial part in inducing the party into the contract.
representation must actually be acted upon.

Question 6

what are the types of misrepresentation?

Answer 6

fraudulent misrepresentation, negligent misrepresentation, innocent misrepresentation

Question 7

what must the claimant prove to establish fraudulent misrepresentation?

Answer 7

claimant must prove that the statement maker:

• knew the statement was false; or
• believed it to be false; or
• was reckless to whether or not it was true

Question 8

what is negligent misrepresentation?

Answer 8

s2(1) Misrepresentation Act: a person makes a false statement which he may honestly believe to be true but without reasonable grounds for believing the statement to be true

Question 9

what is innocent misrepresentation?

Answer 9

defendant must prove that he had reasonable grounds for believing the statement was true

Question 10

what are the remedies for misrepresentation?

Answer 10

recission, damages, indemnity payment

Question 11

what are the rules for a party excluding liability for misrepresentation?

Answer 11

s3 MA: exclusions or restrictions of liability for misrepresentation must be reasonable or they will have no effect
common law says it is unlawful to exclude liability for fraudulent misrepresentation