misrepresentation Flashcards
What is misrepresentation
A false statement of material fact made by a party to the contract which induces the other party to enter into a contract
What act gave claimants the right to claim due to misrepresentation
misrepresentation act 1967
the factors to prove misrepresentation
1.False statement
2.material fact
3.made by a party to the contract
4.induces the other party to enter the contract
What is a false statement
Statement must be true or inaccurate based on the persons knowledge
can be written or verbal or by conduct as show in Gordan v Selico
Is someone obliged to make a statement about what is being offered?
no - Fletcher v Krell
but anything they do say must be truthful
Does someone have to tell the other party if situations change e.g. statements are no longer true
Yes must update theses so no misrepresentation occurs - With v O’Flanagan
can silence be misrepresentation
Not usually but if:
•it is a half truth - Dimmock v Hallett
•If the relationship is based on trust - Tate v Williamson
•if a contract is of utmost good faith facts must be disclosed whether asked for or not - Lambert v cooperative insurance
Can misrepresentation be by conduct
Yes - spice girls v Aprilia
what is material fact
it would have led the reasonable person to make the contract and it influenced C to enter the contract + must be of fact
can a statement of material fact be opinion + case?
no - Bisset v wilkinson
is a statement of future intention a statement of material fact?
no - edgington v fitzmaurice
what is meant by “made by a party to the contract”
only those party to the contract are liable for the statements they make
what is meant by induces the other party to enter the contract
statement must lead the other party to make decision to enter the contract + relied on by them
does C have to rely on the statement from D - induces them to enter contract + case
Yes - can’t be from others - Atwood v small
What are the types of misrepresentation
innocent
negligent
fraudulent
what is innocent misrepresentation
a false statement made honestly D must have had reasonable and genuine belief that their statement was true
what is negligent misrepresentation
a false statesmen made by a person who has no grounds to believe it was true + they have knowledge and skill
what is fraudulent misrepresentation
a false statement that you know is not true or is reckless as to if it is true or not
What remedies are available for innocent misrepresentation
rescission - discretionary - only award it if it is fair in the circumstances
remedies from negligent misrepresentation
rescission and damages
remedies for misrepresentation
rescission and damages
case for negligent misrepresentation
Howard marine v ogden and sons
