Misrepresentation and Economic Duress Flashcards
What is a vitiating factor?
Any factor that makes a contract void or voidable
What are the 2 examples of vitiating factors?
Misrepresentation
Economic Duress
What is misrepresentation?
A false statement of material fact made by a party to the contract that induces the other party to enter the contract
What needs to happen for there to be a misrepresentation?
- A false statement
- A material fact
- Made by a party to the contract
- Induces the other party to enter the contract
Can silence be a misrepresentation?
No
Is there an obligation on a person wishing to enter a contract to make a statement about what is being offered?
No but anything said in that respect must be true
What are the cases for misrepresentation?
- Fletcher vs Krell
- With vs O’Flanagan
- Dimmock vs Hallett
- Tate vs Williamson
- Lambert vs Co-Operative Insurance Society
- Spice Girls Ltd vs Aprilia World Service BV
What is the POL from Fletcher vs Krell?
There was no misrep as she was under no duty to disclose her marital status as she had not been asked for it
What is the POL from With vs O’Flanagan?
The change of circumstance made the originally accurate statement false and it was held he had to tell the purchaser of this
What is the POL from Dimmock vs Hallett?
The part-truth that the tenants were on the land but were actually leaving was a misrep and the maker of the statement has a duty to reveal the whole situation
What is the POL from Tate vs Williamson?
The advisor’s failure to disclose that he was personally intending to buy the land was a breach of trust and therefore a misrep
What is the POL from Lambert vs Co-Operative Insurance Society?
Her silence about her husbands conspiracy to steal conviction was a misrep
What is the POL from Spice Girls Ltd vs Aprilia World Service BV?
By all of the group attending the promo filming represented that none of them intended to leave the group and none of them were aware that one member intended to. This was a misrep
What are the cases for material fact?
Bisset vs Wilkinson
Edgington vs Fitzmaurice
What is the POL from Bisset vs Wilkinson?
As he genuinely believed his statement was true it was not a misrep
What is the POL from Edgington vs Fitzmaurice?
Statement was seen as a statement of fact rather than just future intention as the did not have that intention so it was a misrep
What are the cases for induces the other party to enter the contract?
- Attwood vs Small
- Redgrave vs Hurd
- Museprime Properties Ltd vs Adhill Properties Ltd
What is the POL from Attwood vs Small?
No misrep as the buyer relied on the survey report and not the seller’s incorrect statement
What is the POL from Redgrave vs Hurd?
He was entitled to rely on the seller’s statement, which, as it was untrue, was a misrep
What is the POL from Museprime Properties Ltd vs Adhill Properties Ltd?
It is irrelevant what a reasonable person would’ve done in the circumstances just what the person done in that case
What act outlines what a misleading omission is?
Consumer Protection (Amendment) Regulations 2014
What are the examples of what a misleading omission could be?
- Omits material information that the average consumer needs to make an informed contractual decision
- Hides or provides material information in an unclear, unintelligible, ambiguous or untimely manner
- Fails to identify the commercial intent of the commercial practice if not already apparent from the context
What are the 3 types of misrepresentation?
- Innocent
- Negligent
- Fraudulent
What act defines an innocent misrep?
The Misrepresentation Act 1967
What is the definition of an innocent misrep?
One which is genuinely held on reasonable grounds
The person making the false statement always believed it to be true
What are the remedies for innocent misrep?
Recission
Damages
What is the case that brought about negligent misrep?
Hedley Byrne vs Heller
What is the definition of a negligent misrep?
A false statement made by a person who had no reasonable grounds to believe it’s true but did
What are the 2 types of negligent misrep?
- Under the common law tort of negligence
- Under the Misrepresentation Act 1967
What is the case for the common law tort of negligence?
Hedley Byrne vs Heller
What does Section 2(1) of the Misrepresentation Act 1967 define negligent misrep as?
A misrepresentation which results in a contract, the victim suffers a loss and there is no reasonable grounds to believe it is true
What is the case for negligent misrep under the Misrepresentation Act 1967?
Howard Marine vs Ogden & Sons