Misrepresentation

Question 1

Define

Answer 1

Misrepresentation is a false statement of fact made by the representor to the other before the contract was made and which induced the other party to enter into the contract.

Question 2

False statement of fact

Answer 2

The statement can be oral, in writing or by conduct.
(Spice Girls v Aprilia)
It must be a false statement of fact not an opinion, or silence.
(Fletcher v Krell)
Half truths are misrepresentation.
(Dimock)
You must say if circumstances change.
(With v O’Flanagan)

Question 3

Made during pre-contractual negotiations

Answer 3

Not liable for statements made by others unless they are his agent.

Question 4

Induce the party into the contract.

Answer 4

Statement must lead the other party into making the contract - critical part of decision. C must rely on statement made rather than own judgement or information obtained elsewhere.

(Attwood v Small)
Relied on surveyor
(Redgrave v Hurd)
Doesn’t matter if C could have taken reasonable steps to determine the truth.

Question 5

Innocent

Answer 5

False statement made honestly - courts have belief that party genuinely believed this statement.

Question 6

Innocent remedies

Answer 6

Rescission - return parties to the position they were in prior to the contract.

Not available if:
1. Original position is impossible
2. Affirmation - C carries on when aware of misrepresentation
3. Third party gained rights

Question 7

Negligent

Answer 7

False statement believing it’s true but doesn’t take reasonable care to ensure it is.

Question 8

Fraudulent

Answer 8

Makes statement knowing it to be false or makes it being reckless as to whether it’s true.

Question 9

Negligent remedy

Answer 9

Rescission or damages

Question 10

Fraudulent remedy

Answer 10

Sue for damages for the tort of deceit (Derry v Peek)