Misrepresentation Flashcards
First stage of the misrepresentation model answer? (definition)
For a misrepresentation there has to be a false/untrue statement of a material fact made by a party to the contract at the time/before the contract and intended to be acted upon that induces the other party to enter into the contract.
What is the second stage of the misrepresentation model answer? (false statement)
it can be anything that influences the other party’s decision such as actions or conduct. There must be a false statement, this means that silence cannot be a misrepresentation (Fletcher v Krell). If a statement by the representor is true when made but becomes untrue or inaccurate before the contract is made, then the representor must clarify the change. (With v O’Flanagan). If a relationship is based on trust then silence by the representor may prove to be a misrepresentation (Tate). This trust will exist in relationships e.g. between lawyer and client, parent and child.
Therefore, here, there is a false statement when…
What is the third stage of the misrepresentation model answer? (material fact)
It must be a statement of fact NOT a statement of opinion or merely an advertising puff. In Bissett v Wilkinson a farmer told the purchaser of his land that he thought the land would graze 2,000 sheep as the farmer had never grazed sheep on the land and the purchaser knew this, the statement was one of opinion and so could not be a misrepresentation.
Here, the material fact was…
What is the fourth stage of the misrepresentation model answer? (another)
A statement of intention to act in a particular way in the future may be a statement of fact if the representor did not have that intention when making the statement. The statement of intent was an untrue statement of fact and therefore a misrepresentation in Edington v Fitzmaurice as the company never intended to invest the money in the way stated.
Here, the statement was made by…
What is the fifth stage of the misrepresentation model answer? (before or at time of contract)
The statement must be made by one party to another.
There is no misrepresentation when the untrue statement is made by a third party, i.e. someone not a party to the contract.
Here, the statement was made by..
What is the sixth stage of the misrepresentation model answer? (induce)
The statement induces the other to enter the contract.
The statement must be important to the making of the contract and the person making the contract must have relied on the statement rather than his own judgement or information gained elsewhere. In Attwood v Small there was no misrepresentation as the purchaser relied on the survey report when buying the mine and not the seller`s statement.
Here, the statement induced thhe contract as…
