Misrepresentation Flashcards
Order to talk
1) False statement
2) Statement must be of fact
3) statement made by a party in the contract
4) Must induce party to enter
5) types of misrep
6) Remedies?
Spice girls v Aprilia
Actions / conduct can be misleading
Fletcher v Krell
Silence / non-disclosure is not misrep (original rule)
Tate v Williamson
Confidential relationships, non-disclosure is misrep
Dimmock v Hallett
Half-true statements will be misrep
With v O’flanaghan
If a change in circumstances after contract is not communicated, it is misrep.
Bisset v Wilkinson
Opinions are not fact unless comes from expert.
Edgington
Future intent- if they lied it will be misrep.
Carlill v carbolic smoke ball
Mere sales talk or “puff”- empty boasts are not misrep, e.g “redbull gives you wings”.
Attwood v Small
Statement must induce to enter, here, surveyor induced.
Redgrave v Hurd
Shows inducement is subjective.
S2(1) misrep act innocent
Defined innocent- Genuinely believed statement was true / reasonable grounds to believe so.
S2(1) neg
Defined negligent- Believed statement was true but with no reasonable grounds.
S2(1) fraudulent
Defined- Making a statement they don’t believe is true.
What is rescission
Applies to all types, allows cancellation of contract, put back to original position
