Misrepresentation Flashcards
Ecay v Godfrey
Seller suggested buyer get survey of boat before sale, advice was considered evidence that the seller did not wish to be bound by the statement that the boat was in good condition, statement was not a binding term.
Oscar Chess v Williams
Statement made about car was representation, not term. Intelligent bystander test, would a reasonable bystander think that a warranty was intended?
Dick Bentley v Harold Smith
Statement was made by car dealer with expertise in order to induce, bystander would think that the statement was intended as a term.
Keates v Earl of Cadogan
Earl was silent as to state of house, this was not a representation, a positive statement must almost always be made, caveat emptor “let the buyer beware”. Exceptions - contracts of the utmost good faith, insurance contracts etc.
Spice Girls v Aprilla World Services
Representation by conduct - by doing a photoshoot together the band represented that they would stay together for the whole tour.
Dimmock v Hallet
Auctioneer said land was fertile and improvable - mere puff - shouldn’t have been taken literally.
Half truths may also be misrepresentation.
Bisset v Wilkinson
Claim as to how many sheep land could support was opinion, not made by an expert, would have been obvious that it was only opinion rather than fact.
Esso Petroleum v Mardon
Expertise elevated statement from opinion to actionable misrepresentation.
Smith v Land and House Property
Statement seemed to be opinion, but the maker of the statement had relevant knowledge which conflicted with the statement, elevated it to misrepresentation.
Wales v Wadham
Statement was honest at the time, intentions later changed.
Edgington v Fitzmaurice
Company stated shares were being sold to pay for company expansion, in fact they were being sold to pay off debts, misrepresentation.
With v O’Flanogan
If circumstances change and statement becomes untrue the maker of the statement should tell the other party to avoid misrepresentation.
Commercial Bank Co (Sydney) v RH Brown and Co
Seller asked buyer’s bank if buyer could pay, they said yes, buyer didn’t pay, bank could be guilty of misrepresentation.
Smith v Chadwick
“If statement was of such a nature that it would be likely to induce a person into a contract, and it is proved that the plaintiff did enter into the contract, it is a fair inference of fact that he was induced to so so by the statement”
False statement made in a prospectus advertising company shares saying famous person would be company director, Smith couldn’t have been induced by this as he did not know who the person was.
JEB Fasteners v Marks Bloom
Errors were made to company accounts before takeover, however money was not the motive for takeover, rather access to the company’s directors, no claim for misrepresentation.
