MISREPRESENTATION Flashcards
what is a vitiating factor? (1)
something that makes a contract void or voidable.
what is meant by void? (1)
a void contract is one that is declared to be nullity, in other words, it has never had legal effect. A void contract is said to be ab initio.
what does ab initio mean? (1)
from the beginning
what is meant by voidable? (1)
a voidable contract can be made void in certain circumstances. if the right to make it void is not exercised then the contract remains valid.
where does misrepresentation occur? (1)
a misrepresentation only occurs during the formation of an contract.
what are representations? (1)
representations are statements that influence a decision on whether or not to make a contract, and are misrepresentations when false.
what is the effect of misrepresentation? (1)
the effect of misrepresentation is to make the contract voidable, this means that the contact is valid unless a party who has suffered misrepresentation takes action to seek to end the contract.
what is misrepresentation? (1)
a false statement of material fact made by a party to the contract that induces the other party to enter the contract.
What are the elements of misrepresentation? (4)
-a false statement
-of material fact
-made by a party to the contract
-that induces the other party to enter the contract
What is meant by a false statement? (1)
To be a misrepresentation the statement made must be false, meaning it is not true or accurate.
What cannot be a misrepresentation? (1)
Because there must be a statement to be a misrepresentation, silence cannot be misrepresentation.
What case covers a false statement, in terms of misrepresentation? (1)
Spice girls ltd v Aprilia world service BV (2000)
What occurred in the case of spice girls ltd v Aprilia world services BV and when was it?(3)
The band spice girls recently disbanded (removal of one member) and failed to tell an advertisement crew this, they created many promotional items before they were informed. The court decided that by all of the group attending they did not make it seem that one of them was leaving and was therefore misrepresentation.(2000)
What case covers silence, in terms of misrepresentation? (1)
Fletcher v Krell (1873)
What occurred in the case of fletcher v krell and when was it? (3)
A woman applied for a job which looked down on divorced women, she did not state his but the court decided that this was not misrepresentation as it was not a formal requirement for her to do as such as therefore was not needed in making the decision. (1873)
What qualifications cover misrepresentation?(3)
-change of circumstances
-the making of a half-truth
-confidential relationships
What is meant by a change of circumstances, in terms of misrepresentation? (1)
Once a statement has been made, even if it is true when made, can become misrepresentation if it becomes a false once the contract is made. A person must correct information where the situation has changed between making the representation and the acceptance of the offer.
What case covers changing of circumstances in terms of misrepresentation? (1)
With v o’ Flanagan (1936)
What occurred in the case of with v o’flanagan and when was it? (3)
A doctor estimated the profits of his practice with a view of inducement, between the statement and the offer the doctor fell ill and patients left the practice This made he original statement inaccurate, court decided he must tell the purchaser all information. (1936)
What is meant by a half-truth in term of misrepresentation? (1)
Silence can be a misrepresentation if a statement made is a half-truth, what is not said is a non-disclosure and may be a misrepresentation as the maker of the statement has the duty to reveal the whole truth of the situation.
What case covers the presence of a half-truth in terms of misrepresentation?(1)
Dimmock v Halley (1866)
What occurred in the case of Dimmock v Hallett and when was it?(3)
A seller of the land said there were 3 tenants on the land, he did not reveal that these tenants would be leaving shortly after. Court decided that this part-truth was a misrepresentation. (1866)
What is meant by confidential relationships in terms of misrepresentation?(1)
Where a relationship between the parties is based on trust then silence may be misrepresentation. Where a contract is made of ‘utmost good faith’ (uberrimae fidei) then all material facts must be disclosed whether asked about or not.
What cases cover confidential relationships in terms of misrepresentation? (2)
Tate v Williams (1866)
Lambert v co-operative insurance society (1975)