Misrepresentation Flashcards
What are the elements of Misrepresentation?
1) False statement
2) Of material fact
3) Made by a party to the contract
4) That induces other party to enter contract
Explain False statement
- with cases
Must be a positive act (said or done)
- Fletcher v Krell
If half truth is misleading
- Dimmock v Hallett
Conduct can be representation
- Spice girls v Aprilla World Service
If initially true, become false, correctio mut be made
- With v O’Flanagan
Explain Of Material Fact
- with cases
Statement must be fact, not opinion
- Bisset v Wilkinson
Explain Made by party to the contract
- with cases
Part not liable for statements made by others unless they’re from an agent
Explain induces Party to Enter Contract
- with cases
They must’ve relied on statement rather than their own judgement
- Atwood v Small
What remedies are permitted for Misrepresentation?
Recission - equitable remedy, where parties are returned to positions from before contract was made
When is Recission not allowed?
When pre contract position cant be restored
- Clarke v Dickson
When innocent party aware of misrepresentation but continues contract
- Long v Lloyd
When innocent third party would be affected
- Lewis v Avery