Misrepresentation Flashcards
What is vitiating
Destroy or impair legal validity
When will misrepresentation occur
During the formation of a contract
What are misrepresentations
False statements which influenced a decision on whether or not to make a contract
When there is a misrepresentation, what does it mean that the contracts is valid but voidable
The person who suffers from the misrepresentation has the option to take action but they don’t have to
What does voidable mean
The contract can either be affirmed or
rejected by one of the parties due to a vitiating factor
What is meant by rescission
When the innocent party ends the contract because of a misrepresentation.
Recission makes the contract a nullity
What is meant by restitutio in integrum
Put back in the position they were in before the contract was made
What are the 4 misrepresentation requirements
False statement, material fact, made by a party to the contract and induces the other party to enter the contract
What form of statement can be false
Written or verbal
What is meant by a false statement
The statement is false or not accurate
Why does the persons knowledge effect a false statement
The extent of a person’s knowledge
of the accuracy of the statement when
it is made defines the type of misrepresentation
Can hiding a fault be considered a misrepresentation
Yes
What case states hiding a fault can be misrepresentation
Gordon v Selico
Can silence amount to a false statement
No
What case would you use for silence does not amount to false statement
Fletcher v Krell
What case would you do for a false statement can occur through conduct
Spice Girls v Aprilia
What case states part truths can be false statements
Dimmock v Hallett
What case would you use for a statement becoming false before the contract is made is a false statement
With v O’Flanagan
What case states that in a fiduciary relationship, silence can be a
misrepresentation
Tate v Williamson
What case states when the contract is of utmost good faith, then all material facts must be disclosed
Lambert v Co-op insurance society
What does the consumer insurance act 2012 state
Questions must be clear and specific and the consumer must take reasonable care not to make a misrepresenattion
What does material fact mean
It must be a statement of fact rather than opinion
What happens in material fact if the D has special knowledge in that area
What they say will be taken as a statement of fact
What case would you use for material fact
Bisset v Wilkinson
What is a statement of intention
A promise to do something in the future
Is a statement of intention a statement of fact
Generally no
Who must the statement be made by
A party to the contract, including agents
What is induces the other party into entering the contract
The other partied relied on that statement when entering the contract, must be a critical decision
What case would you use for induces the other party to enter the contract
Attwood v small
What case states you are bale to rely on a verbal statement as a part of induces the other party to enter the contract
Redgrave v Hurd
What does s12 consumer rights act 2015 state
Pre contract information for supply
of goods where a trader must provide certain information to the consumer before the contract becomes binding
What are the 3 types of misrepresentation
Fraudulent
Negligent
Innocent
What is fraudulent misrep
When a person induces the contract
by making a statement that they know is untrue
What remedies do you use for fraudulent misrep
Rescission and/ or damages
What case do you use for fraudulent misrep
Greenridge Luton
What is negligent misrep
This is a false statement made by a
person who believed the statement was
true, but had no reasonable grounds for
believing it to be true
What is the remedy for negligent misrep
Rescission and damages
What case do you use for negligent misrep
Howard Marine v Ogden and Sons
What is innocent misrep
A representation which genuinely held on
reasonable grounds
What is the remedy for innocent misrep
Rescission or damages
When is rescission not available
Original position is impossible
Contract is confirmed
Delays
Third party has gained rights
What case do you use for original position is impossible for rescission
Clarke v Dickson
What case do you use for contract is confirmed for rescission
Long v Lloyd
What case do you use for delays for rescission
Leaf v International galleries
What case do you use for third party has gained rights in rescission
Lewis v Avery
