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
Bars to rescission
-Impossible to be put back to original
-Delay
-Affirmation of contract (deciding to carry on after discovering misrep)
-Third party gained rights.
Damages to innocent
Usually rescission but court can award damages if it is fairer. (S2(2) misrep act)
Damages to negligent
Calculated in same way as fraudulent (Royscot v Rogerson)
Damages to fraudulent
Can claim for:
-All losses even if not foreseeable (Doyle v Olby)
-Loss of profit (East v Maurer)
