Misrepresentation

Question 1

what is misrepresentation

Answer 1

when a party to a contract has made an untrue statement during negotiations on which the other party has relied on it and been induced into the contract. Must have been made before or at the time of the contract

Question 2

stage 1

Answer 2

statement must be false meaning not true or accurate

Question 3

stage 1: BISSETT v WILKINSON

Answer 3

statement not misrep if it is an opinion

Question 4

stage 1: EDGINGTON v FITZMAURICE

Answer 4

statement is misrep if person making it could not based on evidence have had that opinion or intention

Question 5

stage 1: SPICE GIRLS LTD v APRILLA WORLD

Answer 5

statement is misrep by actions or conduct

Question 6

stage 1: FLETCHER v KRELL

Answer 6

silence cannot be a misrep, no obligation to make any statement

Question 7

silence is misrep if

Answer 7

DIMMOCK v HALLETT- person only reveals part of truth and deliberately withheld information
WITH v O’FLANAGAN- if statement was true but became untrue due to circumstance and you did not correct the statement

Question 8

stage1: side rule trust relationships

Answer 8

breach of trust will always be a misrep, contracts of upmost good faith must tell the truth

Question 9

stage 2: has the misrepresentation induced party into the contract

Answer 9

ATTWOOD v SMALL- statement must be a critical part of making the decision to enter the contract

Question 10

stage 3: types of misrepresentation

Answer 10

fraudulent, negligent, innocent

Question 11

fraudulent misrepresentation

Answer 11

false statement made without any belief that it is true– DERRY v PEAK defence if you believed statement was true (recission and damages)

Question 12

negligent misstatement

Answer 12

believed statement was true but no grounds to believe it was true– s.2(1) misrepresentation act 1967 defence if reasonable grounds to believe was true (recission and damages)

Question 13

innocent misrepresentation

Answer 13

believed statement was true and had reasonable grounds to believe it was true but just made a mistake (recission, possible damages under s.2(2))

Question 14

stage 4: remedies

Answer 14

recission- contract is unscrambled, both parties returned to pre-contract positions, only granted if fair and possible to both sides
damages- all damage or loss resulted from misrepresentation is claimable