MISREPRESENTATION

Question 1

`to constitute an actionable misrepresentation, there are 5 basic requirements; what are they?

Answer 1

1) it must be a statement
2) be a statement of existing fact or law (mere matter of opinion will generally not suffice)
3) Statement must be false and unambiguous
4) Statement must be by the representor who becomes a party to the contract
5) Party must have relied on the statement and it induced the contract

Question 2

What is the supporting authority that a statement must be made by word or conduct?

Answer 2

Per Denning LJ in Curtis ‘any behaviour, by words or conduct, is sufficient to be a misrepresentation if it is such as to mislead the other

Question 3

Per Denning LJ in Curtis ‘any behaviour, by words or conduct, is sufficient to be a misrepresentation if it is such as to mislead the other
What is this authority for?

Answer 3

he supporting authority that a statement must be made by word or conduct?

Question 4

What is the case example for words under it must be a statement
Sykes

yikes!

Answer 4

in Sykes, the seller failed to disclose that a horrific murder occurred in the house on a seller’s property from which asked if there was any other information which they thought that the buyers should have a right to know
HELD:
No misrepresentation as the seller was under no obligation to tell them about the history of the house

Question 5

the seller failed to disclose that a horrific murder occurred in the house on a seller’s property from which asked if there was any other information which they thought that the buyers should have a right to know
HELD:
No misrepresentation as the seller was under no obligation to tell them about the history of the house

Answer 5

It must be a statement
words
Sykes

Question 6

Spice Girls:
In this case a moped manufacturer contracted with the Spice Girls to sponsor a tour. This contract was based on the representation that all 5 members of the band would continue working together. In fact a member left the band less than month after the contract was signed.
HELD:
There had been a misrepresentation by conduct, since the participation of all 5 band members in the commercial had induced the company into entering the contract

Answer 6

It must be a statement
conduct
Spice Girls

Question 7

It must be a statement
conduct
Spice Girls

Answer 7

Spice Girls:
In this case a moped manufacturer contracted with the Spice Girls to sponsor a tour. This contract was based on the representation that all 5 members of the band would continue working together. In fact a member left the band less than month after the contract was signed.
HELD:
There had been a misrepresentation by conduct, since the participation of all 5 band members in the commercial had induced the company into entering the contract

Question 8

It must be a statement
conduct
Gordon

hold on!

Answer 8

In Gordon, the plaintiff purchased the property in question following an inspection. However, the vendor was held to have fraudulently concealed dry rot and this was held to constitute a representation that the property did not suffer from dry rot
-Buyer beware did not apply because of the actions and statements intended to mislead the purchasers

Question 9

the plaintiff purchased the property in question following an inspection. However, the vendor was held to have fraudulently concealed dry rot and this was held to constitute a representation that the property did not suffer from dry rot
-Buyer beware did not apply because of the actions and statements intended to mislead the purchasers

Answer 9

It must be a statement
conduct
Gordon

Question 10

After establishing words or conduct what must be further considered?

Answer 10

silence and duty of disclosure

Question 11

Authority for silence is not a misrepresentation?

Answer 11

Lord Thurlow in Fox

Question 12

There is generally no duty of disclosure as in Keates:

keates was in a runious state

Answer 12

Keates:
A landlord who was letting his house did not tel the tenant that it was in a ruinous condition
HELD:
 This failure to disclose material information was held not to be a misrepresentation

Question 13

A landlord who was letting his house did not tel the tenant that it was in a ruinous condition
HELD:
 This failure to disclose material information was held not to be a misrepresentation

Answer 13

It must be a statement

There is no generally duty of disclosure as in Keats

Question 14

what are the 5 exceptions to disclosure?

Answer 14

health truths 
change of circumstances
active attempt to conceal a defect 
fidicuiry relationship 
contracts of utmost good faith

Question 15

What is the authority for half truths?

Under duty of disclosure exceptions

Answer 15

Nottingham Patent Brick

Question 16

What is the authority for half truths?
Under duty of disclosure exceptions
Nottingham Patent Brick

nottingham solicitors ey

Answer 16

In this case the purchaser of property asked the vendor’s solicitor whether the land was subject to any restrictive covenants. The solicitor replied that he was not aware of any. However, while this was true, the solicitors lack of awareness was a result of his failure to read the relevant documents. This amounted to a misrepresentation

Question 17

In this case the purchaser of property asked the vendor’s solicitor whether the land was subject to any restrictive covenants. The solicitor replied that he was not aware of any. However, while this was true, the solicitors lack of awareness was a result of his failure to read the relevant documents. This amounted to a misrepresentation

Answer 17

What is the authority for half truths?
Under duty of disclosure exceptions
Nottingham Patent Brick

Question 18

Authority for change in circumstances

under duty of disclosure exceptions

Answer 18

Davies and With v O’Flanagan

Question 19

What happened in the case of With v O’Flanagan?

mrs hanagan !

Answer 19

With v O’Flanagan:
During the course of negotiations for the sale of a medical practice, the vendor mad representations to the purchaser that it was worth a particular sum. By the time the contract was signed, the value of the practice had declined to a substantially lesser sum because the vendor had been ill
HELD: 
If a statement made was true at the time but during the course of negotiations becomes untrue, the person who knows that it has become untrue is under an obligations to disclose the change of circumstances.
Therefore the failure of the vendor to disclose the state of affairs to the purchaser amounted to a misrepresentation

Question 20

During the course of negotiations for the sale of a medical practice, the vendor mad representations to the purchaser that it was worth a particular sum. By the time the contract was signed, the value of the practice had declined to a substantially lesser sum because the vendor had been ill
HELD: 
If a statement made was true at the time but during the course of negotiations becomes untrue, the person who knows that it has become untrue is under an obligations to disclose the change of circumstances.
Therefore the failure of the vendor to disclose the state of affairs to the purchaser amounted to a misrepresentation

Answer 20

It must be a statement
Authority for change in circumstances
under duty of disclosure exceptions

O Flanagan

Question 21

What is the authority of Davies under Change of circumstances
exceptions for duty of disclosure?

mr Davies had a duty to correct

Answer 21

Where a truthful statement of fact is made but is subsequently rendered misleading by a change of circumstances, there is a duty to correct what has become a false impression

Question 22

Where a truthful statement of fact is made but is subsequently rendered misleading by a change of circumstances, there is a duty to correct what has become a false impression

Answer 22

What is the authority of Davies under Change of circumstances
exceptions for duty of disclosure?

Question 23

active attempt to conceal a defect
under duty of disclosure exceptions
what is authority under Schneider v Heath

shnide!

Answer 23

schnieider v Heath This case considered the sale of a ship which was sold to the plaintiff who then discovered the bottom of the ship was worm eaten and keel broken
HELD:
It was found that concealing the defect of the ship was fraudulent

Question 24

This case considered the sale of a ship which was sold to the plaintiff who then discovered the bottom of the ship was worm eaten and keel broken
HELD:
It was found that concealing the defect of the ship was fraudulent

Answer 24

active attempt to conceal a defect
under duty of disclosure exceptions
what is authority?
Shnieder v Heath

Question 25

Contracts of utmost good faith
duty of disclosure exception
authority
Lambert v Insurance

lambton

Answer 25

Lambert v Insurance Society
In this case the claimant who signed for insurance over her husbands jewellery failed to mention his prior convictions for stealing nor his 2 further convictions before renewing the contract. When some of his items were stolen, the insurance company refused on the basis of failure to disclose
HELD: 
Her claim was repudiated as she failed to disclose as the conviction was a material fact and that a prudent insurer would not have continued the risk.

Question 26

In this case the claimant who signed for insurance over her husbands jewellery failed to mention his prior convictions for stealing nor his 2 further convictions before renewing the contract. When some of his items were stolen, the insurance company refused on the basis of failure to disclose
HELD: 
Her claim was repudiated as she failed to disclose as the conviction was a material fact and that a prudent insurer would not have continued the risk.

Answer 26

Contracts of utmost good faith
duty of disclosure exception
authority
Lambert v Insurance

Question 27

Supporting authority for it must be a statement of existing fact or law

Answer 27

bisset v wilkinson

Question 28

Supporting authority for it must be a statement of existing fact or law
Bisset v Wilkinson

Answer 28

efendant for the purpose of sheep farming which the defendant said he believed would be suitable for 2,000 sheep. Both parties knew the defendant had not carried on sheep farming on the land which was found could not hold 2,000 sheep
HELD:
A statement of opinion cannot give rise to an actionable misrepresentation . Though any statement made by an owner who has been occupying his own farm would be regarded as a statement of fact, as he was not a sheep farmer this was just an expression of his opinion on the subject

Question 29

efendant for the purpose of sheep farming which the defendant said he believed would be suitable for 2,000 sheep. Both parties knew the defendant had not carried on sheep farming on the land which was found could not hold 2,000 sheep
HELD:
A statement of opinion cannot give rise to an actionable misrepresentation . Though any statement made by an owner who has been occupying his own farm would be regarded as a statement of fact, as he was not a sheep farmer this was just an expression of his opinion on the subject

Answer 29

Supporting authority for it must be a statement of existing fact or law
Bisset v Wilkinson

Question 30

What are the three circumstances an opinion will be treated as a statement of fact?

Answer 30

statement maker is in better position to know the truth
the statement of opinion comes from an expert
statement of opinion not genuinely held

Question 31

It must be a statement of existing law
the statement maker must not be in a better position to know the truth
smith

smithers…

Answer 31

The vendor of a property described a tenant as a most desirable tenant when he knew that the tenants rent remained unpaid
HELD:
This statement held an implied assertion that he knew of no facts that would lead to the conclusion that the tenant was n fact not a desirable tenant

Question 32

The vendor of a property described a tenant as a most desirable tenant when he knew that the tenants rent remained unpaid
HELD:
This statement held an implied assertion that he knew of no facts that would lead to the conclusion that the tenant was n fact not a desirable tenant

Answer 32

It must be a statement of existing law
the statement maker must not be in a better position to know the truth
smith

Question 33

Where the statement is expert
it must be a statement of fact or law
esso petroleum

Answer 33

the plaintiff entered into a tenancy agreement in respect of a petrol staton which was told would sell a sum of gallons annually under which the plaintiff contracted on this basis. In fact sales were substantially less.
HELD:
Lord Denning commented that if a man who professes to have special knowledge or skill, makes a representation by virtue thereof, he is under a duty of reasonable care to see that the representation is correct

Question 34

the plaintiff entered into a tenancy agreement in respect of a petrol staton which was told would sell a sum of gallons annually under which the plaintiff contracted on this basis. In fact sales were substantially less.
HELD:
Lord Denning commented that if a man who professes to have special knowledge or skill, makes a representation by virtue thereof, he is under a duty of reasonable care to see that the representation is correct

Answer 34

Where the statement is expert
it must be a statement of fact or law
esso petroleum

Question 35

Statement of opinion not genuinely held
Statement of existing fact or law
Edington

you’ve lost ur ed im not paying for that

Answer 35

The claimant was a shareholder who was asked by directors of a company to give a loan with interest in order to grow the business. The claimant, claimed repayment of his money on the ground that it had actually been used to pay off existing debt and so was misrepresented
HELD: 
The court held that the untrue statement as to future intention was a misrepresentation of fact

Question 36

The claimant was a shareholder who was asked by directors of a company to give a loan with interest in order to grow the business. The claimant, claimed repayment of his money on the ground that it had actually been used to pay off existing debt and so was misrepresented
HELD: 
The court held that the untrue statement as to future intention was a misrepresentation of fact

Answer 36

Statement of opinion not genuinely held
Statement of existing fact or law
Edington

Question 37

Statement must be false and unambiogus

Test of Avon Insurance?

Answer 37

• Consider whether the statement is substantially correct

- assess the overall statements

Question 38

• Consider whether the statement is substantially correct

- assess the overall statements

Answer 38

Statement must be false and unambiogus

Test of Avon Insurance?

Question 39

why must the statement be made by the representor who becomes a party to the contract?

Answer 39

this affirms the doctrine of privity

Question 40

The party must have relied on the statement and it induced the contract:
4 steps under Dadourin and Parabola

Answer 40

The representation must be material
It must be known to the representee
it must be intended to be acted upon
it must be acted upon

Question 41

The party must have relied on the statement and it induced the contract:
It must be acted upon
c) Provided the representation is not fraudulent, if the parties were told of the misrepresentation, but later pursued their own investigations, they may be regarded as having relied on their own judgement; Attwood v Small

Answer 41

This case concerned the purchase of a mine who were told exaggerated statements as to its earning capacity by the vendors. The purchasers had these statements checked by their own expert agents who reported them as being correct
In fact the statements were false and the plaintiffs sought to rescind the contract on the basis of their misrepresentation
HELD:
There was no misrepresentation since the purchasers did not rely on the representation made by the vendor. The purchaser relied on the verification of their agents

Question 42

This case concerned the purchase of a mine who were told exaggerated statements as to its earning capacity by the vendors. The purchasers had these statements checked by their own expert agents who reported them as being correct
In fact the statements were false and the plaintiffs sought to rescind the contract on the basis of their misrepresentation
HELD:
There was no misrepresentation since the purchasers did not rely on the representation made by the vendor. The purchaser relied on the verification of their agents

Answer 42

The party must have relied on the statement and it induced the contract:
It must be acted upon
c) Provided the representation is not fraudulent, if the parties were told of the misrepresentation, but later pursued their own investigations, they may be regarded as having relied on their own judgement; Attwood v Small

Question 43

The party must have relied on the statement and it induced the contract:
It must be acted upon
even if the representee could have carried out his own investigations but failed to do this, his failure does not prevent him from relying on the misrepresentation; Redgrave:
Regrave Sutherland

Answer 43

In this case the defendant solicitor sold his practise to the plaintiff which was later found to be worthless. The plaintiff sought remission of the contract and damages on the ground of misrepresentation
HELD:
The contract was bale to be rescinded as well as the return of his deposit. The judges held that it is not sufficient to say that it is up to a man to use his due diligence to find out another’s statement was untrue

Question 44

In this case the defendant solicitor sold his practise to the plaintiff which was later found to be worthless. The plaintiff sought remission of the contract and damages on the ground of misrepresentation
HELD:
The contract was bale to be rescinded as well as the return of his deposit. The judges held that it is not sufficient to say that it is up to a man to use his due diligence to find out another’s statement was untrue

Answer 44

The party must have relied on the statement and it induced the contract:
It must be acted upon
even if the representee could have carried out his own investigations but failed to do this, his failure does not prevent him from relying on the misrepresentation; Redgrave:

Question 45

What was the main case which concerned fraudulent misrepresentation?

Answer 45

Derry v Peak

Question 46

What happened in the case of Derry v Peak?
Fraudulnt misrepresentation

tramway to Derry

Answer 46

In this case the defendants were directors of a tramway which was authorised by statute to run tramways by animal power or steam power, with consent of the Board of Trade. When the latter refused to use steam power the claimant, having acted in reliance upon the representation, obtained shares in the company.
HELD:
Established that an absence of honest belief is necessary to constitute fraud; rooted in the tort of deceit

Question 47

In this case the defendants were directors of a tramway which was authorised by statute to run tramways by animal power or steam power, with consent of the Board of Trade. When the latter refused to use steam power the claimant, having acted in reliance upon the representation, obtained shares in the company.
HELD:
Established that an absence of honest belief is necessary to constitute fraud; rooted in the tort of deceit

Answer 47

What happened in the case of Derry v Peak?

Fraudulnt misrepresentation

Question 48

How did Lord Hershell in Derry v Peak define fraudulent ?

Answer 48

1) made knowingly
2) without belief in its truth
3) recklessly, careless whether it be true or false

Question 49

which case noted that motive is irrelevant under the tort of deceit (Fraudulent misrepresentation)

Answer 49

Foster v Charles

Question 50

What is the key authority for negligent misrepresentation?

Answer 50

Hedley Byrne 1963

Question 51

Prior to which case in where all misrepresentations classified as innocent or fraudulent?

Answer 51

Hedley Byrne

Question 52

negligent misrepresentation
Hedley Byrne

u just got burrrrned

Answer 52

IN this case the claimant was an advertising agency which had asked the defendant bank for a reference in respect of a customer of a bank. The bank replied that the agency could assume that its client would be able to meet its financial obligations. The client was unable to do so.
HELD:
HOL held negligent statements could attract liability which could extend to economic loss

However on the facts of the case, no duty had arisen as the defendants disclaimer was effective to exclude the assumption of a duty of care on their part

Question 53

IN this case the claimant was an advertising agency which had asked the defendant bank for a reference in respect of a customer of a bank. The bank replied that the agency could assume that its client would be able to meet its financial obligations. The client was unable to do so.
HELD:
HOL held negligent statements could attract liability which could extend to economic loss

However on the facts of the case, no duty had arisen as the defendants disclaimer was effective to exclude the assumption of a duty of care on their part

Answer 53

negligent misrepresentation

Hedley Byrne

Question 54

For the remedy of negligent misrepresentation to be available under Hedley a duty of care must be shown to exist between the maker of the statement and the person who acted upon it with whom a special relationship exists. To establish this duty what 3 things must be satisfied?1

Answer 54

1) reasonable foreseeability of reliance and harm
2) sufficient proximity between the parties
3) just and reasonable for the duty to be imposed

Question 55

The principles of negligent misstatement stated obiter in Hedley have been applied so that liability arises for negligent misstatement which has induced a party to enter into a contract as in Esso Petroleum:

Answer 55

During negotiations for the franchise of a petrol station, a representative of Eso stated that the petrol station would sell a sum of fuel annually, but actually sold substantially less
HELD: 
The failure to disclose the change incircumstances amounted to negligent misstatement under the Hedley Byrne principle.

Question 56

During negotiations for the franchise of a petrol station, a representative of Eso stated that the petrol station would sell a sum of fuel annually, but actually sold substantially less
HELD: 
The failure to disclose the change incircumstances amounted to negligent misstatement under the Hedley Byrne principle.

Answer 56

The principles of negligent misstatement stated obiter in Hedley have been applied so that liability arises for negligent misstatement which has induced a party to enter into a contract as in Esso Petroleum:

Question 57

What are the key points of the negligent misrepresentation statute misrepresentation act 1967 s.2(1)?

Answer 57

where a person entered a contract after a misrepresentation was made and suffered loss, then if the person making the misrepresentation would be liable to damages if it was made fraudulently, that person shall be liable notwithstanding that it was not made fraudulently unless reasonable grounds to believe at the time the contract was made, the facts represented were true

Question 58

where a person entered a contract after a misrepresentation was made and suffered loss, then if the person making the misrepresentation would be liable to damages if it was made fraudulently, that person shall be liable notwithstanding that it was not made fraudulently unless reasonable grounds to believe at the time the contract was made, the facts represented were true

Answer 58

What are the key points of the negligent misrepresentation statute misrepresentation act 1967 s.2(1)?

Question 59

What is the key case under negligent misrepresentation statute misrepresentation act 1967 s.2(1)?

Answer 59

Howard Marine

Question 60

negligent misrepresentation statute misrepresentation act 1967 s.2(1)
Howard Marine

Answer 60

The defendant represented that the ships could carry a certain sum of tonnes after checking the register. The actual amount was significantly lower.
HELD:The defendant had not discharged the burden of proof by demonstrating on reasonable grounds for believing it to be true as they had the registration document which contained the correct capacity and so no reason why they would have chosen the register over the registration document

Question 61

What is one advantage of statutory action under the negligent misrepresentation statute misrepresentation act 1967 s.2(1)

Answer 61

there is no need to establish a duty of care and the representor may not escape liability by simply disproving negligence but must prove reasonable grounds for belief

Question 62

What are the 4 remedies of misrepresentation?

Answer 62

recession
indemnity
damages
claim for breach of contract

Question 63

What are each 3 types of misrepresentation allowed in remedies?

Answer 63

innocent:
allows for rescission OR damages

Negligent and fraudulent:
rescission and/or damages

Question 64

What are the 3 ways rescission can be waived?

Answer 64

1) impossible to trace the other party
- Caldwell
2) legal proceedings is sufficient to constitute notice of rescission
3) if the result of the misrepresentation is that the possession of property is delivered to the representor, the recapture of the property is communication of the rescission

Question 65

Which case held that rescission was not possible?

Answer 65

TSB Bank, rescission was total and partial rescission was not possible

Question 66

What are the 5 bars to rescission?

Answer 66

1) affirmation
2) lapse of time
3) impossibility of rescission
4) third party interests
5) discretion of the court Misrepresentation Act

Question 67

What case noted that if a claimant affirmed the contract after being aware of the misrepresentation, he would lose right to rescind contract?

Answer 67

long v Lloyd

Question 68

noted that if a claimant affirmed the contract after being aware of the misrepresentation, he would lose right to rescind contract
long v lloyd

thats so long he travelled

Answer 68

Long v Lloyd
the plaintiff bought a vehicle said to be in exceptional condition, but during his test drive noticed defects so bought it at a reduced price. The plaintiff then notices serious issues but allowed his brother to use it on a business trip where it broke down
HELD:
Court rejected the claim as an innocent misrepresentation would have allowed them to rescind after the contract had been executed, but in sending the lorry on the business trip, the plaintiff construed final acceptance of the vehicle and lost the right to rescind

Question 69

Long v Lloyd
the plaintiff bought a vehicle said to be in exceptional condition, but during his test drive noticed defects so bought it at a reduced price. The plaintiff then notices serious issues but allowed his brother to use it on a business trip where it broke down
HELD:
Court rejected the claim as an innocent misrepresentation would have allowed them to rescind after the contract had been executed, but in sending the lorry on the business trip, the plaintiff construed final acceptance of the vehicle and lost the right to rescind

Answer 69

noted that if a claimant affirmed the contract after being aware of the misrepresentation, he would lose right to rescind contract
long v lloyd

Question 70

For non-fraudulent, the time runs from the date of the contract itself, or could have been discovered with reasonable diligence, not the date of recovery as in Leaf:

picture of a leaf

Answer 70

In this case the plaintiff purchased a picture from the defendants who represented that it was painted b the artist. Five years later, the plaintiff tried to sell the painting but was found not to have been painted by that artist. The plaintiff sought to rescind the contract
HELD:
The claim failed as a significant amount of time had lapsed and the mistake was not severe enough to void the contract.

Question 71

In this case the plaintiff purchased a picture from the defendants who represented that it was painted b the artist. Five years later, the plaintiff tried to sell the painting but was found not to have been painted by that artist. The plaintiff sought to rescind the contract
HELD:
The claim failed as a significant amount of time had lapsed and the mistake was not severe enough to void the contract.

Answer 71

For non-fraudulent, the time runs from the date of the contract itself, or could have been discovered with reasonable diligence, not the date of recovery as in Leaf:

picture of a leaf

Question 72

Where is rescission not possible?

Answer 72

where goods have been perished or destroyed

Question 73

rescission is not possible where goods have been perished nor where the goods have not perished but have been altered as in Vigers v Pike

damn pike eeee

Answer 73

A lease of a mine which had been entered into as a result of a misrepresentation could not be rescinded as there had been considerable extraction of minerals since the date of the contract

Question 74

A lease of a mine which had been entered into as a result of a misrepresentation could not be rescinded as there had been considerable extraction of minerals since the date of the contract

Answer 74

rescission is not possible where goods have been perished nor where the goods have not perished but have been altered as in Vigers v Pike

Question 75

Which case noted that it would be unjustthat a person who has been in possession of property under contract he seeks to repudiate should be allowed to throw back without accounting for any benefit he may have derived from use, the property of which has so deteriorated.

Answer 75

Erlanger

Question 76

the courts may deny rescission where the award disturbs the rights of a third party as in Football club v Dowie

dowse thatll hurt the bank

Answer 76

The defendant was a football manager who would pay a sum of money if he left his post before the end of the contract and joined a premiership football club. When he did not receive a promotion he wished to leave to be closer to his family. However he was later made a new manager of a premiership team. The claimant argued they were deceived under a fraudulent misrepresentation
HELD:
Defendant had made a fraudulent misrepresentation but it was not so simple to rescind the agreement as this would mean he would be employed by two football clubs as would restore his old contract; unfair to the defendants new club. The court held it was appropriate to instead pay damages for the fee he would have before had to have paid.

Question 77

The defendant was a football manager who would pay a sum of money if he left his post before the end of the contract and joined a premiership football club. When he did not receive a promotion he wished to leave to be closer to his family. However he was later made a new manager of a premiership team. The claimant argued they were deceived under a fraudulent misrepresentation
HELD:
Defendant had made a fraudulent misrepresentation but it was not so simple to rescind the agreement as this would mean he would be employed by two football clubs as would restore his old contract; unfair to the defendants new club. The court held it was appropriate to instead pay damages for the fee he would have before had to have paid.

Answer 77

the courts may deny rescission where the award disturbs the rights of a third party as in Football club v Dowie

Question 78

What is the courts discretion of rescission under s.2(2) Misrepresentation act?

Answer 78

they can decide to award damages in lieu of damages

Question 79

it is grounded in the tort of deceit that damages are identical to tortious damages to restore claimant to the position they would have been in had the misrepresentation not been made. As considered in McConnell

Answer 79

held that the highest limit of damages is the whole extent of loss

Question 80

in what case was it established that the correct measure for damages is tortious?

Answer 80

Royscott Trust

Question 81

The defendant, a car dealer, misstated the particulars of a sale by hire purchase to the claimants, a finance company. The claimant company brought an action against the defendant seeking damages but the defendant argued that there was no loss.
HELD:
As the finance company were induced to pay an extra sum of money, that was the relevant loss suffered.
Damages under s.2(1) Act 1967 should be assessed on the basis of damages available in the tort of deceit not general contractual principles; this applies in the absence of fraud.

Answer 81

Royscott Trust

damages under s.2(1) Misrepresentation Act 1967

Question 82

Royscott Trust

damages under s.2(1) Misrepresentation Act 1967

Answer 82

The defendant, a car dealer, misstated the particulars of a sale by hire purchase to the claimants, a finance company. The claimant company brought an action against the defendant seeking damages but the defendant argued that there was no loss.
HELD:
As the finance company were induced to pay an extra sum of money, that was the relevant loss suffered.
Damages under s.2(1) Act 1967 should be assessed on the basis of damages available in the tort of deceit not general contractual principles; this applies in the absence of fraud.

Question 83

s.2(2) of the Misrepresentation act appears that a person under an innocent misrepresentation may, under a judges’ discretion, recieve damages where only rescission was an available remedy
however what is the exception?

Answer 83

Rescission must be availble in the first place, if a bar exists, section 2(2) cannot arise.

Question 84

What case provides that a party cannot exclude liability for his own fraudulent misrepresentation?

Answer 84

S Pearson and Son

Question 85

ase provides that a party cannot exclude liability for his own fraudulent misrepresentation?
S Pearson and Son

Answer 85

The defendant provided the plaintiff with plans for work on a sewage system. The plaintiff agreed to undertake the work on the information that had been provided which turned out to be untrue. the defendant denied liability as a result of a limitation clause that stated the plans must not be relied on.
HELD: 
Court found in favour of the plaintiff; it did so as the defendant could not limit or avoid their liability for their own fraudulent statement
This decision from the COA was revised an the original trial decision restored

Question 86

The defendant provided the plaintiff with plans for work on a sewage system. The plaintiff agreed to undertake the work on the information that had been provided which turned out to be untrue. the defendant denied liability as a result of a limitation clause that stated the plans must not be relied on.
HELD: 
Court found in favour of the plaintiff; it did so as the defendant could not limit or avoid their liability for their own fraudulent statement
This decision from the COA was revised an the original trial decision restored

Answer 86

ase provides that a party cannot exclude liability for his own fraudulent misrepresentation?
S Pearson and Son