Misrepresentation

Question 1

Misrepresentation definition

Answer 1

A false statement of fact which induces the other party to enter into the contract

Question 2

5 requirements of misrepresentation

Answer 2

• A statement of material fact
• Made by one party to a contract to the other party
• During the negotiations leading up the formation of the contract
• Which was intended to operate and did operate as an inducement
• Under the contract, and which was untrue or incorrectly stated

Question 3

A statement of material fact

Answer 3

Bisset v Wilkinson - Land could hold 2000 sheep. Held: an honest opinion not a material fact

Question 4

Made by one party to a contract to the other party

Answer 4

Peyman v Lanjani - 3rd party told incorrect information, so contract was ended as not told misrepresentation

Question 5

During the negotiations leading up the formation of the contract

Answer 5

Roscorla v Thomas - during the formation of the contract, cannot be after.

Question 6

Which was intended to operate and did operate as an inducement

Answer 6

Atwood v Small - Acted as an inducement, he used his own experts so didnt rely on info

Question 7

Under the contract, and which was untrue or incorrectly stated

Answer 7

Couchman v Hill - Statement was false, was told heifer was unserved. It gave birth and died - a misrep

Question 8

A misrepresentation is not… (3)

Answer 8

An opinion
Said after the contract
Said to someone who is not a party

Question 9

3 types of misrepresentation

Answer 9

Fraudulent
Negligent
Innocent

Question 10

Fraudulent misrepresentation

Answer 10

Derry v Peak - if a false statement which he or she does not believe to be true at the time, its fraudulent misrepresentation.

Question 11

Remedy for fraudulent misrepresentation

Answer 11

Damages will be awarded under Misrepresentation act 1967 according to Tort of deceit
Equitable remedy of rescission is also available
Defendant is responsible for all losses including consequential loss providing a causal link between the fraudulent misrepresentation and the claimants loss

Question 12

Negligent misrepresentation

Answer 12

Hedley Byrne v Heller & Partners - damages may be recovered where financial loss incurred and there is special relationship between parties

Question 13

Hedley Byrne criteria

Answer 13

Damages recovered where there is a special relationship

3 requirements

1. Party making statement is in possession of knowledge for which advice is required
2. Sufficient proximity between 2 parties to rely on statement
3. Other party is aware of reliance

Question 14

Remedies of negligent misrepresentation

Answer 14

Damages applied according to standard tort under misrepresentation act 1967
Equitable remedy of rescission available

Question 15

Innocent misrepresentation

Answer 15

Prior it was any misrepresentation not made fraudulent
Under misrepresentation act 1967, A statement with an honest belief in its truth

Question 16

Remedy for innocent misrepresentation

Answer 16

Equitable remedy of recisssion
Damages available under s2(1) misrep act 1967