Misrepresentation- 3 different types of misrepresentation

Question 1

Where to look for sample structure of misrepresentation?

Answer 1

-Katie powerpoint: vitiating factors- misrepresentation.

Question 2

What are the three different types of misrepresentation?

Answer 2

1. Innocent
2. negligent
3. fraudulent

Question 3

Next we need to consider the different types of misrepresentation…

Answer 3

…innocent, negligent and fraudulent and each type has different remedies available.

(argue which one it is in the scenario- do not need to go through 3!!)

Question 4

What is meant by fraudulent misstatement?

Answer 4

a deliberate lie/ reckless statement

Question 5

Which cases go with fraudulent misstatements?

Answer 5

-East V Maurer
-Derry V Peek
-Greenridge V Kempton investments

Question 6

East V Maurer

Question 7

Derry V Peek

Answer 7

-false statement made by a party who knows it not to be true/ reckless as to its accuracy.

Question 8

Greenridge V Kempton investments

Answer 8

-even if no deliberate lie- if one party plays down important aspect of facts- misrepresentation.

Question 9

What are the remedies available for a fraudulent misrepresentation?

Answer 9

-Damages (calculated according to the law of tort)
-Recission (puts parties back into position they were in before formation of contract)

Question 10

What is meant by an innocent misrepresentation?

Answer 10

-defined in the misrepresentation act 1967.
-an innocent statement of facts that are believed to be true ( a false statement made honestly)

Question 11

When are the acceptions for when recission will not be available for an innocent misstatement?

Answer 11

-impossible
-a third party has gained rights over a property.

Question 12

What are the remedies available for an innocent misrepresentation?

Answer 12

-recission
OR…
-damages
-not both

Question 13

What is meant by a negligent misstatement?

Answer 13

-A person who believed the statement was true, but had no reasonable grounds of doing so.

Question 14

Which cases goes with negligent misstatement?

Answer 14

-Royscot Trust v Rodgerson.
-Hedley Bryne V Heller
-Howard Marine V Ogden

Question 15

Royscot Trust V Rodgerson?

use with the definition of negligent misstatement.

Answer 15

-car dealer misrepresented to a finance company the amount of a deposit paid for a car by purchaser
-finance c lost money when purchaser defaaulted on hire-purchase agreement.

Question 16

What are the 2 claim options for a negligent misstatement?

Answer 16

1. Common law of negligence
2. Under S2 (1) of the misrepresentation act 1967.

Question 17

What comes under the common law of negligence?

Answer 17

Hedley Bryne V Heller- is there a special relationship between the parties?
-makes it more difficult to proove.

Question 18

When is S2 (1) of the misrepresentation act 1967 used?

Answer 18

-no special relationship
-there is a misrepresentation
-that results in a contract
-C suffers loss

Question 19

Which case goes with the burden or proof under s2(1) of the misrepresentation act?

Answer 19

Howard Marine V Ogden

Question 20

Howard Marine V Ogden?

Answer 20

-burden of proof on person making the misstatement to prove they had reasonable grounds to believe the statement was true.

Question 21

What are the remedies for negligent misrepresentation?

Answer 21

-damages
-recission.