misrepresentation Flashcards
what is misrepresentation
they are statements that influence a decision on whether or not to make a contract and are misrepresentations when false
what to do if there is a misrepresentation
you can recidivate the contract/ end the contract
cases to show a false statement
. 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
what is a material fact
something that would have led a reasonable person to make a contract. it must be a statement of fact, not opinion
case for material facts
. 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.
what is made by a party to the contract
a person is not liable for anything said by anyone else unless they are an agent.
what is the induction of the other party to enter the contract
this means that a professions opinions were used to make the decision. the person making the contract must have relied on the statement.
cases for the induction of the other party into the contract
. 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
what is considered misleading to a contract
omitting material information that the average consumer needs, hides or provides material information in an unclear way, fails the identify the commercial effect
different types of misrepresentation
. innocent
. negligent
. fraudulent
what is innocent misrepresentation
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
what is a negligent misrepresentation
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
2 types of negligent misrepresentation
. common law tort of negligence
. the misrepresentation act 1967
what is the common law tort of negligence
this is based on economic loss, no damage done to person or property. relies on a special relationship between the parties
what is negligence under the misrepresentation act 1967
it doesn’t require the have a special relationship. all that is required is for the victim to have suffered a loss.
what is fraudulent misrepresentation
this is where a person makes a statement which they know to be untrue.
derry v peek
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
remedies for innocent misrepresentation
recission is only possible if there was a delay, if the contract is affirmed, pre contract position is impossible
cases for precontract position is impossible
clarke v dickson- claimant was misled into becoming a partner. recission was not allowed as he could not return the partnership
cases for the contract is affirmed
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
cases for delay
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
remedies of misrepresentation regarding damages
no right to damages for innocent misrepresentation.
remedies for negligent misrepresentation
can either use damages or recission.
remedies for fraudulent misrepresentation
can either use recission or damages
