misrepresentation

Question 1

what is misrepresentation

Answer 1

they are statements that influence a decision on whether or not to make a contract and are misrepresentations when false

Question 2

what to do if there is a misrepresentation

Answer 2

you can recidivate the contract/ end the contract

Question 3

cases to show a false statement

Answer 3

. with v o’flanagan- doctor accurately stated the profits of his practice. he fell ill and lost clients but didn’t tell the buyer. this was a misrepresentation

Question 4

what is a material fact

Answer 4

something that would have led a reasonable person to make a contract. it must be a statement of fact, not opinion

Question 5

case for material facts

Answer 5

. Bisset v Wilkinson- the seller of farmland never has sheep and was asked how many sheep the field could take. he made an educated guess and said 2000. it didn’t hold this many. wasn’t a misrepresentation as he genuinely believed it.

Question 6

what is made by a party to the contract

Answer 6

a person is not liable for anything said by anyone else unless they are an agent.

Question 7

what is the induction of the other party to enter the contract

Answer 7

this means that a professions opinions were used to make the decision. the person making the contract must have relied on the statement.

Question 8

cases for the induction of the other party into the contract

Answer 8

. Attwood v small- seller of a mine made a false statement to the purchaser about the earnings of the mine. the surveyor said this incorrectly. so no misrepresentation

Question 9

what is considered misleading to a contract

Answer 9

omitting material information that the average consumer needs, hides or provides material information in an unclear way, fails the identify the commercial effect

Question 10

different types of misrepresentation

Answer 10

. innocent
. negligent
. fraudulent

Question 11

what is innocent misrepresentation

Answer 11

this is when a false statement is made honestly- they believed the statement was true. can either get damages or recission of the contract, not both

Question 12

what is a negligent misrepresentation

Answer 12

this is where a false statement is made be a person who had no reasonable grounds for believing it to be true. it wasn’t deliberate but nothing to suggest it is true

Question 13

2 types of negligent misrepresentation

Answer 13

. common law tort of negligence
. the misrepresentation act 1967

Question 14

what is the common law tort of negligence

Answer 14

this is based on economic loss, no damage done to person or property. relies on a special relationship between the parties

Question 15

what is negligence under the misrepresentation act 1967

Answer 15

it doesn’t require the have a special relationship. all that is required is for the victim to have suffered a loss.

Question 16

what is fraudulent misrepresentation

Answer 16

this is where a person makes a statement which they know to be untrue.

Question 17

derry v peek

Answer 17

horse pulled trams. wanted to use motor driven trams which consent was a formality. told it would be more profitable. not fraudulent as it was careless but not malicious

Question 18

remedies for innocent misrepresentation

Answer 18

recission is only possible if there was a delay, if the contract is affirmed, pre contract position is impossible

Question 19

cases for precontract position is impossible

Answer 19

clarke v dickson- claimant was misled into becoming a partner. recission was not allowed as he could not return the partnership

Question 20

cases for the contract is affirmed

Answer 20

long v lloyd- claimant was told that a lorry was in excellent conditions. the claimant noticed faults with the lorry. defendant offered to pay half for repairs. lorry broke down and was not allow recission as by accepting him to pay they had affirmed the contract

Question 21

cases for delay

Answer 21

leaf v international galleries- claimant had purchased a picture of Salisbury cathedral. not done by the famous artist. tried to sell 5 years later. couldn’t rely on recission as there was a 5 year delay

Question 22

remedies of misrepresentation regarding damages

Answer 22

no right to damages for innocent misrepresentation.

Question 23

remedies for negligent misrepresentation

Answer 23

can either use damages or recission.

Question 24

remedies for fraudulent misrepresentation

Answer 24

can either use recission or damages