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
