misrepresentation Flashcards
What is a misrepresentation?
A misrepresentation makes a contract voidable. This means it is valid unless the person who has suffered the misrepresentation takes action to end the contract.
What 4 things must there be for a misrepresentation?
- a false statement
- material fact
- made by a party to the contract
- includes the other party to enter the contract
Fletcher v Krell
silence can not be a misrepresentation
With v O’Flanagan
a statement can be true initially but become a misrepresentation by the time of making the contract
Tate v Williamson
where the relationship between the parties is based on trust then silence may be a misrepresentation
Dimmock v Halley
silence can be a misrepresentation where a statement is made a half truth
Spice Girls LTD v Aprillia
actions can be a statement
The Consumer Insurance (disclosure and representations) Act 2012
a consumer need not volunteer information but has a duty to answer questions honestly and reasonably
What is a material fact?
- a statement must influence the mind of the person making the contract
Basset v Wilkinson
must be a statement of fact not opinion
Edington v Fitzmaurice
a statement of intention is a promise to do something in the future. This is not a statement of fact unless the person making the statement has no intention of carrying out
Example of ‘made by a party to the contract’
A review of an item cannot be a misrepresentation
section 12 Consumer Rights Act 2015
- the trader has to provide certain information before the contract becomes binding
- it is considered to be misleading when a trader deliberately misses out key information that the consumer might need to make an informed decision
What act did Innocent Misrepresentations comes from, what is it and what remedy would be awarded?
- The Misrepresentation Act 1967
- When a false statement has been made honestly
- Recission or damages
What is negligent misrepresentation
a false statement that has been made by a person who believes it to be true but has no reasonable grounds to believe it to be true
what is a Fraudulent Misrepresentation
a misrepresentation made by a person who knows it is not true