Misrepresentation

Question 1

What is misrepresentation?

Answer 1

A false statement of material fact made by a party to the contract which induces the other party to enter a contract

Question 2

What are the 4 elements of misrepresentation?

Answer 2

False statement
Material fact
Made by a party to the contract
Induces another party to enter the contract

Question 3

What act does misrepresentation come under?

Answer 3

Misrepresentation Act 1967

Question 4

What is a false statement? (4 elements)

Answer 4

Untrue or inaccurate
Written or verbal
Doesn’t have to make a statement
Complete silence cannot be misrepresentation

Question 5

What is the case for a false statement?

Answer 5

Fletcher v Krell- not misrep

Question 6

When can silence be misrepresentation? (2)

Answer 6

If it is the half truth
Relationship based on trust

Question 7

What are the 2 cases for silence being misrepresentation?

Answer 7

Tate v Williamson
Dimmoco v Hallett

Question 8

What is misrepresentation by conduct?

Answer 8

Doesn’t have to be written or verbal as long as it influences the other parties decision

Question 9

What is the case for misrepresentation by conduct?

Answer 9

Spice girls v Aprilia

Question 10

What is a material fact?

Answer 10

Important information to influence C’s decision to enter contract
Must be fact not opinion

Question 11

What is the case for misrepresentation having to be a fact?

Answer 11

Bisset v Wilkinson

Question 12

What is not misrepresentation for material fact?

Answer 12

Future intention is not a fact
Did not believe their opinion was honest= fact

Question 13

What is the case for a material fact not being misrepresentation?

Answer 13

Edgington v Fitzmaurice

Question 14

What is ‘made by a party to the contract’?

Answer 14

Only the party to the contract are liable for false statements

Question 15

What does it mean if it ‘induces the other party to enter the contract’? (3 elements)

Answer 15

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

Question 16

What is the case for relying on the statement?

Answer 16

Attwood v Small

Question 17

What is the case for the truth being found for inducing party?

Answer 17

Redgrave v Hurd

Question 18

What are the 3 types of misrepresentation?

Answer 18

Innocent
Negligent
Fraudulent

Question 19

What is innocent misrepresentation?

Answer 19

A false statement made honestly and had genuine belief that the statement was true

Question 20

What are the remedies for innocent misrepresentation?

Answer 20

Rescission
Damages

Question 21

What is rescission?

Answer 21

Putting the parties back in their pre-contractual position if it is fair to do so in the circumstances

Question 22

What is rescission unavailable for innocent misrepresentation? (4 elements)

Answer 22

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

Question 23

What is negligent misrepresentation?

Answer 23

False statement made where the person has no grounds to believe it was true- had knowledge and skill

Question 24

What is the case for negligent misrepresentation?

Answer 24

Howard v Ogden- should have known correct information

Question 25

What are the remedies for negligent misrepresentation?

Answer 25

Rescission
Damages

Question 26

What is fraudulent misrepresentation?

Answer 26

Know the false statement isn’t true without belied it was true

Question 27

What is the case for fraudulent misrepresentation?

Answer 27

Derry v Peek

Question 28

What are the remedies for fraudulent misrepresentation?

Answer 28

Rescission
Damages