Misrepresentation Flashcards
What is the second rule of misrepresentation?
2) Of fact or law
- Bissett v Wilkinson: sheep
- Esso Petroleum v Mardon
What is an addition to the second rule of misrepresentation?
2) (1) Statements of intention
- Wales v Wadham: remarrying
- The Sunflower: permissions
What is the third rule of misrepresentation?
3) Statement must be addressed to party misled
- Peek v Gurney: prospectus
- Commercial Banking Co of Sydney: Bank made misrep to bank
What is the fourth rule of misrepresentation?
4) Statement must be false
- Nottingham Patent Brick + Tile v Butler: restrictive covenants
- Dimmock v Hallett: tenant notice
What is the fifth rule of misrepresentation?
5) Must have induced party to enter
- Edgington v Fitzmaurice: if unaware or not true can’t claim
- Redgrave v Hurd: no duty to check
What remedies are available for misrepresentation?
- Rescission
- Damages
What does rescission do? Give case examples
Makes the contract voidable and returns party to position before
- Redgrave v Hurd
- Whittington v Seale-Hayne
What are some limitations on rescission?
- Knowing there is a misrepresentation
- Lapse of time (laches) (Leaf)
- Can’t return to original (Whittington)
- Bad contract (William Sindall)
What damages are available for misrepresentation?
- Fraudulent misrepresentation
- Negligent misrepresentation
- Innocent misrepresentation
- 2(1) Misrepresentation Act 1967
Define fraudulent misrepresentation with a case example
‘Knowingly, without belief in it’s truth’
High level of damages
-> East v Maurer: representation that would work in hairdressers
Describe negligent misrepresentation with a case example.
Need to show duty of care & breached
-> Hedley Byrne v Heller: asked D for reference, client was bad
Define innocent misrepresentation with a case example.
Section 2(2) may yield damages in lieu of rescission
Describe S2(1) of the Misrep Act 1967 with a case example.
Easiest to prove, high level of damages
- > Howard Marine v Ogden: Lloyds register, disregarded documents
- > Royscott Trust v Rogerson: wording means liable at same level of fraud
Give criticisms of Section 2(1) Misrep Act
MCKENDRICK: No justification for treating an innocent man fraudulently.
If use of 2(1) has lower proof and higher damages, why would anyone use fraud?
What is the first rule of misrepresentation?
1) An unambiguous statement
- Fletcher v Krell: governess
- With v O’Flanagan: change disclosed
- Walters v Morgan: nod
