Misrepresentation Flashcards

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1
Q

Misrepresentation Definition

A

A false statement of material fact made by a party to the contract that induces the other party to enter to contract

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2
Q

What are 3 types of misrepresentation?

A

Fraudulent
Negligent
Innocent

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3
Q

Key Elements of Misrepresentation

A

A false statement
A false statement of material fact
Made by a party to the contract
Inducement of party into contract

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4
Q

What is a false statement?

A

Untrue statement
Knowledge of defendant will determine the type of misrepresentation

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5
Q

What is the legal principle in Fletcher v Krell (1873)?

A

Silence is not misrepresentation and you don’t need to disclose any information that you are not asked about

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6
Q

What is the legal principle in Tate v Williamson (1866)?

A

Silence can be misrepresentation when the party’s relationship is based on trust

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7
Q

What is subsequent falsity?

A

Even if a statement is true when made, it can become misrepresentation if it’s made false before the contract is made

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8
Q

What is the legal principle in With v O’Flanagan?

A

You must change your original statement if it becomes false

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9
Q

What is a half-truth?

A

What isn’t said is a non-disclosure and may be representation as the statement maker has a duty to reveal the whole truth

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10
Q

What is the legal principle in Dimmock v Hallett (1866)?

A

Half-truths can amount to misrepresentation

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11
Q

What is good faith (uberrimae fidei)?

A

All material facts must be disclosed whether asked about or not
Typical of insurance contracts

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12
Q

What is the legal principle in Spice Girls v Aprilia World Service (2002)?

A

Half-truths can be misrepresentation

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13
Q

What is the legal principle in Lambert v Co-Op Insurance Society (1975)?

A

Silence is misrepresentation so they refuse to pay her claim

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14
Q

Rule surrounding Material Fact

A

An opinion won’t create an actionable misrepresentation

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15
Q

What is the legal principle in Bisset v Wilkinson (1927)?

A

If you genuinely believe your opinion is accurate it does not amount to misrepresentation

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16
Q

What is the legal principle in Smith v Land and House Properties Corp (1884)?

A

Not a mere opinion so the statement was untrue and therefore misrepresentation is present

17
Q

What is the legal principle in Edgington v Fitzmaurice (1885)?

A

Seen as a fact not a future intention so it was misrepresentation

18
Q

What is inducement?

A

A statement that leads the other party into making the contract; doesn’t need to be the main reason, it could be a contributing factor

19
Q

What is the legal principle in Attwood v Small (1838)?

A

The purchaser relied on the survey report not the seller’s statement, so even though the statement was untrue it wasn’t misrepresentation

20
Q

What is the legal principle in Redgrave v Hurd (1881)?

A

They were entitled to rely on the seller’s untrue statement so this held to be misrepresentation

21
Q

What is the legal principle in Museprime Properties v Adhill Properties (1990)?

A

The purchaser relied on the statements so there can be misrepresentation

22
Q

What two things are in s.12 of the Consumer Rights Act (2015)?

A

Traders have to provide certain information before the contract becomes binding
A change to information is not effective unless EXPRESSLY agreed between parties

23
Q

What is considered as misleading under the CP(A)R (2014)?

A

Hides or provides information in an unclear, ambiguous manner
Omits material information that the consumer needs to make the decision
Fails to identify the commercial intent of the commercial practice

24
Q

What is the definition of fraudulent misrepresentation?

A

A statement made that is known to be untrue or is reckless as to whether or not it’s true

25
Q

What is the legal principle in Derry v Peek (1889)?

A

Fraudulent misrepresentation is present if the false statement is made knowingly, without belief in its truth and recklessly

26
Q

What are the remedies for fraudulent misrepresentation?

A

Damages under tort measure and/or rescission of the contract in equity

27
Q

What is negligent misrepresentation?

A

A false statement made by a person who had no reasonable grounds for believing it to be true but it’s not a deliberate lie

28
Q

What are the 2 types of negligent misrepresentation?

A

At Common Law- Hedley Byrne v Heller (1964)- Recoverable under the tort of negligent misstatement
Under the Misrepresentation Act (1967)

29
Q

What is the legal principle in Howard Marine v Ogden & Sons (1978)?

A

Negligent misrepresentation because they had no reasonable grounds to believe it’s true so the argument failed

30
Q

What are the remedies for negligent misrepresentation?

A

Rescission and/or damages
Damages calculated according to the law of tort and foreseeable damages

31
Q

What is innocent misrepresentation?

A

Neither fraudulent or negligent
Representation which is genuinely held on reasonable grounds
False statement made honestly

32
Q

What are the remedies for innocent misrepresentation?

A

Rescission OR damages
Equitable remedies which are discretionary
Rescission is a drastic remedy

33
Q

Bars to rescission: Affirmation
Description and Case

A

If you affirm the contract you lose the right to rescission
Long v Lloyd (1958)

34
Q

Bars to rescission: Lapse of Time
Description and Case

A

The longer the lapse of time, the less likely you are to get rescission
Leaf v International Galleries (1950)

35
Q

Bars to rescission: Impossibility
Description and Case

A

If it’s impossible for rescission to occur then it’s a bar to rescission
Vigers v Pike (1842)

36
Q

Bars to rescission: Third Party Rights
Description and Case

A

If the third party is innocent, rescission isn’t available
White v Garden (1851)