MISREPRESENTATION Flashcards
`to constitute an actionable misrepresentation, there are 5 basic requirements; what are they?
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
What is the supporting authority that a statement must be made by word or conduct?
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
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?
he supporting authority that a statement must be made by word or conduct?
What is the case example for words under it must be a statement
Sykes
yikes!
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
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
It must be a statement
words
Sykes
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
It must be a statement
conduct
Spice Girls
It must be a statement
conduct
Spice Girls
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
It must be a statement
conduct
Gordon
hold on!
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
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
It must be a statement
conduct
Gordon
After establishing words or conduct what must be further considered?
silence and duty of disclosure
Authority for silence is not a misrepresentation?
Lord Thurlow in Fox
There is generally no duty of disclosure as in Keates:
keates was in a runious state
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
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
It must be a statement
There is no generally duty of disclosure as in Keats
what are the 5 exceptions to disclosure?
health truths change of circumstances active attempt to conceal a defect fidicuiry relationship contracts of utmost good faith
What is the authority for half truths?
Under duty of disclosure exceptions
Nottingham Patent Brick
What is the authority for half truths?
Under duty of disclosure exceptions
Nottingham Patent Brick
nottingham solicitors ey
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
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
What is the authority for half truths?
Under duty of disclosure exceptions
Nottingham Patent Brick
Authority for change in circumstances
under duty of disclosure exceptions
Davies and With v O’Flanagan
What happened in the case of With v O’Flanagan?
mrs hanagan !
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
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
It must be a statement
Authority for change in circumstances
under duty of disclosure exceptions
O Flanagan
What is the authority of Davies under Change of circumstances
exceptions for duty of disclosure?
mr Davies had a duty to correct
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
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
What is the authority of Davies under Change of circumstances
exceptions for duty of disclosure?
active attempt to conceal a defect
under duty of disclosure exceptions
what is authority under Schneider v Heath
shnide!
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
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
active attempt to conceal a defect
under duty of disclosure exceptions
what is authority?
Shnieder v Heath
Contracts of utmost good faith
duty of disclosure exception
authority
Lambert v Insurance
lambton
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.
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.
Contracts of utmost good faith
duty of disclosure exception
authority
Lambert v Insurance
Supporting authority for it must be a statement of existing fact or law
bisset v wilkinson
Supporting authority for it must be a statement of existing fact or law
Bisset v Wilkinson
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
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
Supporting authority for it must be a statement of existing fact or law
Bisset v Wilkinson
What are the three circumstances an opinion will be treated as a statement of fact?
statement maker is in better position to know the truth
the statement of opinion comes from an expert
statement of opinion not genuinely held
It must be a statement of existing law
the statement maker must not be in a better position to know the truth
smith
smithers…
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
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
It must be a statement of existing law
the statement maker must not be in a better position to know the truth
smith
Where the statement is expert
it must be a statement of fact or law
esso petroleum
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
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
Where the statement is expert
it must be a statement of fact or law
esso petroleum
Statement of opinion not genuinely held
Statement of existing fact or law
Edington
you’ve lost ur ed im not paying for that
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
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
Statement of opinion not genuinely held
Statement of existing fact or law
Edington
Statement must be false and unambiogus
Test of Avon Insurance?
- Consider whether the statement is substantially correct
- assess the overall statements
- Consider whether the statement is substantially correct
- assess the overall statements
Statement must be false and unambiogus
Test of Avon Insurance?
why must the statement be made by the representor who becomes a party to the contract?
this affirms the doctrine of privity
The party must have relied on the statement and it induced the contract:
4 steps under Dadourin and Parabola
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
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
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
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
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
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
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
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
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:
What was the main case which concerned fraudulent misrepresentation?
Derry v Peak
What happened in the case of Derry v Peak?
Fraudulnt misrepresentation
tramway to Derry
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
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
What happened in the case of Derry v Peak?
Fraudulnt misrepresentation
How did Lord Hershell in Derry v Peak define fraudulent ?
1) made knowingly
2) without belief in its truth
3) recklessly, careless whether it be true or false
which case noted that motive is irrelevant under the tort of deceit (Fraudulent misrepresentation)
Foster v Charles
What is the key authority for negligent misrepresentation?
Hedley Byrne 1963
Prior to which case in where all misrepresentations classified as innocent or fraudulent?
Hedley Byrne
negligent misrepresentation
Hedley Byrne
u just got burrrrned
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
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
negligent misrepresentation
Hedley Byrne
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
1) reasonable foreseeability of reliance and harm
2) sufficient proximity between the parties
3) just and reasonable for the duty to be imposed
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:
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.
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.
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:
What are the key points of the negligent misrepresentation statute misrepresentation act 1967 s.2(1)?
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
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
What are the key points of the negligent misrepresentation statute misrepresentation act 1967 s.2(1)?
What is the key case under negligent misrepresentation statute misrepresentation act 1967 s.2(1)?
Howard Marine
negligent misrepresentation statute misrepresentation act 1967 s.2(1)
Howard Marine
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
What is one advantage of statutory action under the negligent misrepresentation statute misrepresentation act 1967 s.2(1)
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
What are the 4 remedies of misrepresentation?
recession
indemnity
damages
claim for breach of contract
What are each 3 types of misrepresentation allowed in remedies?
innocent:
allows for rescission OR damages
Negligent and fraudulent:
rescission and/or damages
What are the 3 ways rescission can be waived?
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
Which case held that rescission was not possible?
TSB Bank, rescission was total and partial rescission was not possible
What are the 5 bars to rescission?
1) affirmation
2) lapse of time
3) impossibility of rescission
4) third party interests
5) discretion of the court Misrepresentation Act
What case noted that if a claimant affirmed the contract after being aware of the misrepresentation, he would lose right to rescind contract?
long v Lloyd
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
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
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
noted that if a claimant affirmed the contract after being aware of the misrepresentation, he would lose right to rescind contract
long v lloyd
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
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.
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.
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
Where is rescission not possible?
where goods have been perished or destroyed
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
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
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
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
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.
Erlanger
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
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.
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.
the courts may deny rescission where the award disturbs the rights of a third party as in Football club v Dowie
What is the courts discretion of rescission under s.2(2) Misrepresentation act?
they can decide to award damages in lieu of damages
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
held that the highest limit of damages is the whole extent of loss
in what case was it established that the correct measure for damages is tortious?
Royscott Trust
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.
Royscott Trust
damages under s.2(1) Misrepresentation Act 1967
Royscott Trust
damages under s.2(1) Misrepresentation Act 1967
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.
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?
Rescission must be availble in the first place, if a bar exists, section 2(2) cannot arise.
What case provides that a party cannot exclude liability for his own fraudulent misrepresentation?
S Pearson and Son
ase provides that a party cannot exclude liability for his own fraudulent misrepresentation?
S Pearson and Son
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
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
ase provides that a party cannot exclude liability for his own fraudulent misrepresentation?
S Pearson and Son
