Misrepresentation

Question 1

Define misrepresentation

Answer 1

An untrue statement of fact made by one party to a contract, by words or conduct, to the other contracting party, which induced the other to enter into the contract

Question 2

What are the 3 categories of statements?

Answer 2

Terms - if it’s a term, it’s actionable

Representations - a statement that is made in order to induce you into the contract. If these are untrue, it will be misrepresentation

Sales puff - just a slogan that no one takes seriously

Question 3

Guidelines of a term of contract

Answer 3

Greater skill/knowledge

Written term

Importance made clear

Opportunity to verify information

Timing

Question 4

What happens if there’s not a term

Answer 4

This will be representation

Question 5

What other type of misrepresentation is there?

Answer 5

Misrepresentation by conduct

Question 6

What is fraudulent misrepresentation?

Answer 6

If they know it’s false
They don’t know if it’s true
It was made recklessly

Question 7

Non-fraudulent misrepresentation?

Answer 7

Under S.2(1) Misrepresentation Act 1967

Negligence. You honestly believe the statement but you do not have reasonable grounds

Question 8

Who holds the burden of proof with non-fraudulent misrepresentation?

Answer 8

Misrepresentor to prove they believed it on reasonable grounds

Question 9

What are the remedies for misrepresentation?

Answer 9

Make the contract voidable

Rescission

Affirmation

Indemnity

Question 10

What is rescission?

Answer 10

To put the contract aside and act as if it never happened

Question 11

What is affirmation?

Answer 11

Means you wish to go ahead with the contract but want damages for any part of the contract you did not receive

Question 12

What is indemnity?

Answer 12

Re-imbursement for expenses incurred under terms of the contract to which they were induced

Question 13

How can you lose the right to rescind?

Answer 13

Affirmation

Delay

Innocent third-party interest

Impossibility