Misrepresentation

Question 1

What is the voidable contract

Answer 1

Legal and binding at the outset capable of performance but a less serious error renders it voidable and allows one party to seek recession cancellation of the contract

Question 2

What is misrepresentation

Answer 2

Is where our party is induced into a contract on the basis of a false statement of fact

Question 3

What is innocent miss representation

Answer 3

Party making the statement honestly and genuinely believes that they are giving correct information but it is actually false no damages available for consequential loss Only restitution possible I E parties cancel the contract plus each is returned to original position

Question 4

What is fraudulent misrepresentation

Answer 4

Person making false statement does so dishonest and with intention to deceive recession and damages available

Question 5

Give a case study of opinion and not at this representation

Answer 5

Bissete v Wilkerson 1927

Seller of land in New Zealand was asked by the buyer if it was suitable for a particular number of sheep seller expressed the opinion that it was suitable it was held not to be misrepresentation because it was clear it was only an opinion

Question 6

What is the void contract

Answer 6

Contract that never comes into existence in the first place I fundamental error has prevented formation. A legal nulity

Question 7

Give example of a void contract

Answer 7

Morrison v Robertson 1908

Crucial to decision that the contract was the misrepresentation as to identity because Morrison would not have sold cattle to anyone as he thought that conman was the son of Wilson

Question 8

Effects of misrepresentation

Answer 8

Contract usually voidable and injured party must apply for a single cancel should take immediate steps to avoid allegations of ratification acceptance of the situation