Misrepresentation Flashcards
Misrepresentation Definition
A false statement of material fact made by a party to the contract that induces the other party to enter to contract
What are 3 types of misrepresentation?
Fraudulent
Negligent
Innocent
Key Elements of Misrepresentation
A false statement
A false statement of material fact
Made by a party to the contract
Inducement of party into contract
What is a false statement?
Untrue statement
Knowledge of defendant will determine the type of misrepresentation
What is the legal principle in Fletcher v Krell (1873)?
Silence is not misrepresentation and you don’t need to disclose any information that you are not asked about
What is the legal principle in Tate v Williamson (1866)?
Silence can be misrepresentation when the party’s relationship is based on trust
What is subsequent falsity?
Even if a statement is true when made, it can become misrepresentation if it’s made false before the contract is made
What is the legal principle in With v O’Flanagan?
You must change your original statement if it becomes false
What is a half-truth?
What isn’t said is a non-disclosure and may be representation as the statement maker has a duty to reveal the whole truth
What is the legal principle in Dimmock v Hallett (1866)?
Half-truths can amount to misrepresentation
What is good faith (uberrimae fidei)?
All material facts must be disclosed whether asked about or not
Typical of insurance contracts
What is the legal principle in Spice Girls v Aprilia World Service (2002)?
Half-truths can be misrepresentation
What is the legal principle in Lambert v Co-Op Insurance Society (1975)?
Silence is misrepresentation so they refuse to pay her claim
Rule surrounding Material Fact
An opinion won’t create an actionable misrepresentation
What is the legal principle in Bisset v Wilkinson (1927)?
If you genuinely believe your opinion is accurate it does not amount to misrepresentation