misrepresentation

Question 1

what is the definition of misrepresentation

Answer 1

is a vitiating factor that makes a contract voidable.

the victim can rescind the contract

Question 2

what does is state under common law about misrepresentation

Answer 2

misrepresentation occurs during the

formation of a contract & involves a false

statement of material fact made by a

party to the contract that induces the

other party to enter a contract

Question 3

what is meant by false statement of material facts

Answer 3

means something untrue (Fletcher v Krell)

however sellers aren’t under a general

duty to disclose relevant facts

Question 4

Silence

Answer 4

cannot be false statement (Fletcher v

Krell) unless representer remains silent

when a statement that was initially true

then becomes untrue (With v O’Flanagan)

Question 5

Half-truth

Answer 5

can be misrepresentation (Dimmock v

Hallett)

Question 6

Opinion

Answer 6

cannot be an opinion (Bisset v Wilkinson)

Question 7

Conduct

Answer 7

can be made through conduct/

circumstances as well as words

(Spice Girls v Aprilia

Question 8

if there has been a false statement

Answer 8

false statement must induce the other

party to entered the contract

meaning it must be relied on by the

claimant (Attwood v Small, Redgrave v

Hurd), but does not have to be the only

reason for entering the contract

Edrington v Fitzmaurice

Question 9

Insurance contracts

Answer 9

consumer insurance contract are of

utmost good faith. Answer to all the

questions must be answered honestly

(The Consumer Insurance (Disclose &

representations Act 2012), modifying the

decision made in Lambert v Co op

Question 10

What happens if a consumer deliberately lies and if they didn’t know they had to disclose some information

Answer 10

insurance company can avoid the

contract & keep any instalments paid.

If consumer doesn’t realise they should’ve

disclosed the information the insurance is

still valid but payout is reduced by

amount company undercharged

Question 11

false statement of future intentions

Answer 11

Is NOT a false statement of fact HOWEVER

false statement of future intention will be

a false statement of fact if maker of

statement has no intention to carry it out

Edgington v Fitzmaurice

Question 12

Fraudulent

Answer 12

(knowingly or recklessly wrong— Derry v

Peek) where remedy is rescission&

damages in the tort of deceit (East v

Maurer)

Question 13

Negligence

Answer 13

(Carelessly wrong as defined in Hedley

Bryne v Heller) remedy is rescission (The

Wagon Mound) and/ or damages s2(2) of

the misrepresentation act 1967

Question 14

innocent

Answer 14

(honestly wrong) s2(1) o the

misrepresentation act 1967 remedy is

rescission (Long v Lloyd) OR damages s2.

(2) of the misrepresentation act 1966

Question 15

what is s2(1) of the misrepresentation act 1967

Answer 15

once c proves there has been a

misrepresentation the burden of proof is

on the person making statement that

there was reasonable grounds to believe

the statement was true . if reasonable

grounds can’t be proven the statement is

negligence

Question 16

Recession

Answer 16

not awarded if impossible

Question 17

innocent part decides to continue with contract despite being aware of misrepresentation

Answer 17

right to rescind is lost

LONG v Lloyd

Question 18

what does the case of Leaf v International Galleries establish

Answer 18

innocent party delays bringing claim the

right to rescind is lost

Question 19

what does the case of Lewis v Averay establish

Answer 19

Right to rescind is lost when a 3rd party gains rights over property

Question 20

What is said about an omission and misrepresentation

Answer 20

in consumer contracts where information

id deliberately left out or presented in an

unclear way CONSUMER PROTECTION

REGULATION 2008&2014 sets out right to

‘unwind’ contract which is the statutory

equivalent to rescission