misrepresentation

Question 1

misrepresentation

Answer 1

• a false statement of material fact made by one party to induce the other party to enter the contract

Question 2

1. false statement of material fact

Answer 2

• there has to be a false statement of either fact or law
• the statement can be made verbally or by conduct

Question 3

statement must be false (material fact 1/3)

Answer 3

• there must be a statement and it must be untrue (spice girls v aprilia)
• silence can’t be a statement

Question 4

statement must not be an opinion (material fact 2/3)

Answer 4

• if a statement is an opinion then it will not constitute a statement of fact (bisset v wilkinson)

Question 5

statement cannot be a statement of intention (material fact 3/3)

Answer 5

• the statement cannot be a statement expressing future intention to do something (edgington v fitzmaurice)

Question 6

2. made by a party to the contract

Answer 6

• statement must be made by the contracting party to the other contracting party
• no misery made if the statement is made by or to a third party

Question 7

3. induces the other party to enter the contract

Answer 7

• persuading a person to enter the contract (attwood v small)

Question 8

fraudulent misrepresentation

Answer 8

• a statement made without belief of the truth (derry v peek)

Question 9

remedies for fraudulent misrepresentation

Answer 9

• damages: sue for damages in the tort of deceit, puts V in the position they were in before the contract was performed
• rescission: puts the party back into the position they were in before the contract was made, at the discretion of the judge

Question 10

negligent misstatement

Answer 10

• s2(1) misrepresentation act: a statement made where the maker of the statement doesn’t have the reasonable grounds to believe that the statement was true (howard marine v ogden and sons)

Question 11

remedies for negligent misstatement

Answer 11

• damages: MA 1967 s2(1) and s2(2)
• rescission: puts the party back into the position they were in before the contract was made, at the discretion of the judge

Question 12

innocent misrepresentation

Answer 12

• where the maker of the statement has reasonable grounds to believe to be true, s2(1) MA 1967
• neither fraudulent or negligent

Question 13

remedies for innocent misrepresentation

Answer 13

• damages: MA 1967 s2(2), at the discretion of the court
• rescission: MA1967 s2(2), at the discretion of the court
• courts cannot award both

Question 14

contract is affirmed (misrep and role of equity)

Answer 14

• if the innocent part chooses to continue with the contract, it is affirmed and the possibility of rescission is lost

Question 15

delay (misrep and role of equity)

Answer 15

• lapse of time following the misrepresentation/contract means that the possibility of rescission is lost (innocent and negligent) (leaf v international galleries)

Question 16

innocent third party has acquired rights in the goods (misrep and role of equity)

Answer 16

• if a third party acting in good faith has acquired some interest in the goods, the courts will not rescind the contract