Misrepresentation Flashcards
What is misrepresentation?
A false statement of material fact made by a party to the contract which induces the other party to enter a contract
What are the 4 elements of misrepresentation?
False statement
Material fact
Made by a party to the contract
Induces another party to enter the contract
What act does misrepresentation come under?
Misrepresentation Act 1967
What is a false statement? (4 elements)
Untrue or inaccurate
Written or verbal
Doesn’t have to make a statement
Complete silence cannot be misrepresentation
What is the case for a false statement?
Fletcher v Krell- not misrep
When can silence be misrepresentation? (2)
If it is the half truth
Relationship based on trust
What are the 2 cases for silence being misrepresentation?
Tate v Williamson
Dimmoco v Hallett
What is misrepresentation by conduct?
Doesn’t have to be written or verbal as long as it influences the other parties decision
What is the case for misrepresentation by conduct?
Spice girls v Aprilia
What is a material fact?
Important information to influence C’s decision to enter contract
Must be fact not opinion
What is the case for misrepresentation having to be a fact?
Bisset v Wilkinson
What is not misrepresentation for material fact?
Future intention is not a fact
Did not believe their opinion was honest= fact
What is the case for a material fact not being misrepresentation?
Edgington v Fitzmaurice
What is ‘made by a party to the contract’?
Only the party to the contract are liable for false statements
What does it mean if it ‘induces the other party to enter the contract’? (3 elements)
The statement must lead the other party to make the decision to enter the contract
Their own opinion is not enough
If the truth is found, still misrepresentation if the statement was relied upon
What is the case for relying on the statement?
Attwood v Small
What is the case for the truth being found for inducing party?
Redgrave v Hurd
What are the 3 types of misrepresentation?
Innocent
Negligent
Fraudulent
What is innocent misrepresentation?
A false statement made honestly and had genuine belief that the statement was true
What are the remedies for innocent misrepresentation?
Rescission
Damages
What is rescission?
Putting the parties back in their pre-contractual position if it is fair to do so in the circumstances
What is rescission unavailable for innocent misrepresentation? (4 elements)
Returning is impossible- Clarke v Dickson
Contract affirmed- carry on with contract
Delay- Leaf v International galleries
3rd party gained rights over property- Lewis v Averay
What is negligent misrepresentation?
False statement made where the person has no grounds to believe it was true- had knowledge and skill
What is the case for negligent misrepresentation?
Howard v Ogden- should have known correct information
