Misrepresentation

Question 1

What is representation?

Answer 1

statement of fact made in pre-contractual discussions, may later become a term

Question 2

What is misrepresentation?

Answer 2

a false statement of fact made to the claimant, inducing them to enter the contract

Question 3

What are the three elements of misrepresentation? any exceptions

Answer 3

1.statement- silence generally won’t count
2.False
3.Inducement
-Exceptions are caveat emptor- buyer is aware and/or uberrimae fidei- contracts of good faith- here silence may amount to misrepresentation

Question 4

What is fraudulent Misrepresentation? + case law example

Answer 4

Intention to wrongly induce a person into a contract- Heilbut, Symons & Co v Buckleton 1913- company had fewer trees than expected, share price dropped.

Question 5

Silence won’t amount to a statement

Answer 5

Keates v Earl of Cadogan 1851- not a contract of good faith

Question 6

Misrepresentation-conduct case law

Answer 6

Spice Girls 2002- they gave impression Halliwell was int ending to be part of the group, but she left

Question 7

Half-truths can amount to misrepresentation

Answer 7

Dimmock v Hallett 1866- tenants had given notices to quit, but defendant failed to make purchasers of the land aware

Question 8

What if statement made was not factual, but instead was an opinion?

Answer 8

Bisset v Wilkinson 1927- no misrepresentation

Question 9

What case can the Bisset case- opinion, be contrasted with?

Answer 9

Esso Petroleum Co LTD v Mardon 1976- expertise and special duty, they didn’t ensure representation made was correct, although they had the ability to do so

Question 10

Statements of Future Intention- case law

Answer 10

Eddington v Fitzmaurice 1885

Question 11

Statement of Law- also amounts to misrepresentation

Answer 11

LB Hackney 2002- agreement was represented as a license to operate a car park on the property, in reality it was a tenancy agreement

Question 12

Change of circumstances- when does it cause misrepresentation?

Answer 12

in the case of failure to disclose the change- With v O’Flanagan 1936

Question 13

Inducement- the 3rd element of misrepresentation- give case law

Answer 13

Hayward v Zurich Insurance 2016- overexaggerated an injury, to receive a higher amount of money

Question 14

Negligent Misrepresentation- tort law- duty of care

Answer 14

statement made innocently, but carelessly
However- Hedley Byrne v Heller 1964- court found no liability as contract stated ‘with no responsibility on our part’

Question 15

Innocent Misrepresentation- define + case law

Answer 15

Genuine belief in the truth of the statement
Whittington v Seal Hayne 1900- contract may be rescinded- set aside

Question 16

What are the possible remedies for misrepresentation claims? consider common law, equity and statutes

Answer 16

Common Law- Damages- applies for fraudulent, but all misrepresentation counts as fraudulent, unless proven otherwise
Equity- recission- set aside agreement applied in innocent misrep.
Statute- Misrepresentation Act 1967

Question 17

What about cases of incorrect own judgement?

Answer 17

Attwood v Small- doesn’t amount to misrep, claimant acted negligently to the matter

Question 18

Cases where damages were awarded:

Answer 18

NOTE: reasonable reliance on the statement is required
East v Maurer 1991- hair salon failed to make profit

Question 19

Statute Remedy s2(1)/s2(2)

Answer 19

s2(1)- burden of proof
s2(2)- damages may be rewarded au lieu of recission

Question 20

Contract becomes VOID- Fraudster case

Answer 20

Car Universal Finance v Caldwell 1965- fraudster entered contracts without good title on the car- ownership remained with the finance company

Question 21

What bars apply to rescission?

Answer 21

Lapse of time- Leaf v International Galleries- too late
Affirmation- Long v Lloyd- claimant accepted to continue with the contract

Question 22

S3 Misrepresentation Act 1967- what goes under this provision?

Answer 22

Cannot limit liability for misrepresentation, unless requirement of reasonableness in section 11 UCTA 1977 is satisfied- term shall be fair and reasonable, should have been reasonably known by the parties