Misrepresentation Flashcards
Misrepresentation
A false statement of material fact made by a party to the contract which induces the other party to enter a contract
4 part test for misrep
- False statement
- Material fact
- Made by party to contract
- Induces other party to enter
False statement
Must be untrue or inaccurate
Usually written or verbal, doesnt have to be Gordan v Selico
Complete silence cannot be misrep
Case for person is not obliged to make a statement about what is offered
Fletcher v Krell
False info
Must be corrected if the situation changes before acceptance
Case for false info
With v O’Flanagan
Half truth
Silence can be misrep if it is half truth
Case for part truth
Dimmock v Hallett
Case for relationship based on trust
Tate v Williamson
Case for utmost good faith
Lambert v Co-op
Case for misrep by conduct
Spice girls v Aprilia
Material fact
Would have led a reasonable person to make the contract and influence C to enter
Must be of fact not opinion
Case for opinion
Bisset v Wilkinson
Case for future intention
Future intention not a fact and not misrep
Edgington v Fitzmaurice
Made by party to a contract
Only parties and agents to contract liable
Induces other party to enter
Must have left other person to contract
Statement must be relied upon by person entering contract
Case for inducing other party
Attwood v Small
C could have discovered truth by taking reasonable steps case
Redgrave v Hurd
Omissions in consumer context
S.12 of CRA2015- if there is a change to pre contractual info must be expressly agreed between parties
CPR2014- deliberately missing out key info or hiding it in an unclear manner
Types of misrep
Innocent
Negligent
Fraudulent
Innocent misrepresentation
False statement made honestly
Must have had reasonable and genuine belief statement was true
Remedy available for innocent misrep
Rescission
When is rescission unavailable in innocent misrep
Returning parties to pre contractual position is impossible (Clarke v Dickson)
Contract is affirmed
Delay (Leaf v International Galleries)
Third party gained rights(Lewis v Averay)
Negligent misrepresentation
False statement made by a person who has no grounds to believe it was true
Howard Marine v Ogden