Misrepresentation^ Flashcards
Misrepresentation
Untrue representation
Makes the contract voidable
Contract is still valid unless the person who suffers the misrepresentation seeks to end it
Rescission
- Agreement don’t automatically end
- One of the parties must take action to end it
Elements
A false statement
material fact
made by a party to the contract
induces the other party to enter the contract
Fletcher V Krell
silence can’t be a misrepresentation
With V O’Flanagan
A statement can be true initially but becomes a misrepresentation by the time of making the contract
Have to tell the consumer of the change of circumstances
Tate V Wiliamson
Where the relationship between the parties is based on trust, then silence may be a misrepresentation
Dimmock V Hallett
Silence can be a misrepresentation where a statement made is a half truth
Spice Girls Ltd V Aprilia
Statement does not need to be verbal. Actions can be a statement
The Consumer Insurance Act 2012
consumer need not volunteer info, but has a duty to answer questions honestly and reasonably
Bisset V Wilkinson
Statements must influence the mind of the person making the contract. Must be a statement of fact, not opinion to be a misrepresentation
Can’t be a statement of intention.
- promise to do something in the future.
Not a statement of fact unless the person making it has no intention of carrying it out, so its a misrepresentation
Made by a Party to the Contract
review of an item can’t be a misrepresentation
Attwood V Small
The person must have relied on the statement rather than their own judgement
Redgrave V Hurd
It does not matter if the victim could have found out the truth by taking reasonable steps
The Consumer Rights Act 2015
Section 12
Trader has to provide certain info to the consumer before the contract becomes binding
Considered misleading when key info is deliberately missed out
Types
The Misrepresentation Act 1967
Innocent
Negligent
Fraudulent
Innocent Misrepresentation
False statement that has been made honestly without negligence
Rescission (at the court’s descension) or damages
Negligent Misrepresentation
The person who made the statement believed it to be true, but had no reasonable grounds to believe its true
Burden of proof is on the person who made the statement to give reasonable grounds as to why to believe it to be true
The injured party can seek remedies under the Law of Tort or the Misrepresentation Act (rescission and damages)
Fraudulent Misrepresentation
The person induces the contract by making a statement they know is not true
Or is reckless whether it is true
Remedies are rescission and damages
