misrepresentation

Question 1

what are the three broad catergories of misrepresentation?

Answer 1

1. fraudulent
2. nregligent
3. innocent

Question 2

t or f? words or conduct can amount to misrepresentation

Answer 2

true

Question 3

true or false? provided a statement is true at the time it is made the representor is not under a duty to correct the statement if it becomes untrue?

Answer 3

false - a representor is under a duty to correct a statenent that has become false until the time the contract is concluded

Question 4

which four conditions does a representee need to satisfy to prove that the statement induced him into entering the contract

Answer 4

• material
• must be aware of the statement
• the representer must intend them to act on the statement
• must act on the statement

Question 5

what are the remedies for misrepresentation?

Answer 5

• rescission unless it is lost through affirmation or the destruction of the subject matter
• damages are also available in addition to rescission for fraudulent and negligent misrepresentation
• damages is available as an alternative to rescission for innocent misrepresentation.

Question 6

fradulent misrepresentation

Answer 6

• representor knew:
• that the statement was false
• did not believe the statement was true or
• was reckless, not caring whether it was true or false

remedies:

• recission and damages - covrer all direct loss that flows from the transaction regardless of whetehr it was forseeable

Question 7

negligent misrepresentation

Answer 7

representor is honest and believes his statement to be true - has not exerised reasonable care and skill in making the statement

• common law in tort
• must prove there was a special relationsjip which gives rise to a duty of care
• recission and damages
• more limited than fraudulent - damages must be forseeable
• under the misrepresentation act 1967
• rescission and damages

Question 8

innocent misrepresentation

Answer 8

rescission - no automatic rights to damages but court may exercise discretion to award damages rather than rescission - if it considers to be equitable having regard to the circumstances as a whole. CAN ONLY HAVE ONE REMEDY.

Question 8

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