Misrepresentation Flashcards
Introduction to Misrepresentation
- Untrue statement of facts
- Misrepresentation rules do not apply to terms
- Can be made in writing, orally or by conduct
- Renders contrat voidable
- Remedies are recsission, damages or both
- Curtis v Chemical Cleaning and Dyeing Co -> Incorrect statement
- Gordon v Selico -> deliberate concealment
Simons et al v Magnolia Properties Ltd.
-> Silence / non-disclosure / not uberrima fides
Elements of Misrepresentation
- Misrepresentation must relate to past or existing fact
(not merley intention, opinion, mere puff, statement of law)
Edgington v Fitzmaurice (1885)
- Issue of debenture bonds, statement of intention of use of money raised
–
Chao San San & Another v Worldport Industrial Ltd
- Genuinely held belief as to future amenities
–
Bisset v Wilkinson - Sheep case turned on level of knowledge/exercise
(compare Esso Petroleum v Mardon
- Misrepresentation must relate to past or existing fact
Smith v Land & House Property Corporation
“Most desirable tenant”
-
Dimmock v Hallett
“fertile and improvable land”
-
Carlill v Carbolic Smoke Ball Company
“mere puff”
-
Pankhania v Hackney LBC
- Statements about the law (applied: Kleinwort Benson v Lincoln County Council)
- Misrepresentation must be false
- > Dimmock v Hallett
- Sale of farm, “half truth” as to status of tenants
–
Gordon v Selico (1986)
- deliberate concealment
–
Spice Girls v Aprilia
- Concealment that Geri had decided to leave band
–
With v O’Flanagan
- Medical practice, correcting statement / “continuing representation”
- Misrepresentation must induce the contract
Redgrave v Hurd
- Solicitor partnership / inducement to buy into firm / opportunity to check found to be irrelevant
–
Edgington v Fitzmaurice (1885)
- A reason
–
Attwood v Small
- Mine / atual reason for decision / relied on experts not misrepresentation
–
Types of Misrepresentation
- Fraudulent
- Negligent
- Innocent
Since 1967 Misrepresentation act
- Fraudulent Misrepresentation
A false statement is fraudulent if the representor knew it to be false, had no belief in its truth, or was reckless in the sense of not caring whether it was true or false
- Derry v Peek (1889)
- Negligent Misrepresentation
A false statement made in belief that it is true but without reasonable grounds for that belief
Note differences in common law -
Hedley Byrne v Heller & Partners
–
Esso Petroleum v Mardon
Statutory approaches
- Innocent representation
A person makes a false statement, believing it to be true, having reasonable ground to believe it was true up to the time when the contract is concluded
Remedies for Misrepresentation
Generally two types of remedies
- > Rescission
- > Damages
-
Avaiable remedies depend on the category of misrepresentation
Remedies for Misrepresentation
- Fraudulent Misrep.
Rescission + Damages
(East v Maurer - Hair salon case)
Remedies for Misrepresentation
- Negligent Misrep
Rescission + Damages
(Esso Pretoleum v Mardon)
Court can order damages in lieu of rescission
Remedies for Misrepresentation
- Innocent Misrep
Rescission Or Damages
Court can order damages in lieu of rescission
(Misrepresentation Act 1967)
Bars to rescission and damages
Lapse of time
Leaf v International Galleries
–
Efforts made to rescind
Car and Universald Finance v Caldwell
–
Contract affirmed
Long v Lloyd
Summary Misrepresentation
- Three requirements for misrepresentation:
1. Must be past or existing gact (not opinion, not intention, not mere puff, but can be statement of law)
2. Must be untrue
3. Must have induced the contract - Three types of misrepresentation
1. Fraudulent
2. Negligent
3. Innocent - Two types of remedy
1. Damages
2. Rescission
