Misrepresentation & Economic Duress Flashcards
What is a vitiating factor?
Makes a contract void or voidable
What is a misrepresentation?
A false statement of material fact made by a party to the contract that induces the other party to enter the contract
Does a statement have to be false for it to be misrepresentation?
Yes/No Question
Yes
Can silence or omitting to state something not asked for be a misrepresentation (case) ?
No
Fletcher v Krell
What is the case of Fletcher v Krell?
Women applied for job did not state she was divorced no misrepresentation as no duty to disclose marital status
Can a statement becomes a misrepresentation if it becomes false before the contract is made (case)?
Yes With v O’Flanagan
What is the case of With v O’Flanagan
Doctor accurately stated profits of practice but was ill so they were lower than stated. Needed to tell purchaser of new profit.
When can silence be a misrepresentation (case)?
If what is said is a half truth and therefore they are not disclosing something
Dimmock v Hallett
What is the case of Dimmock v Hallett?
Seller of land told purchaser there where tenants on land but failed to state they would be leaving when the purchaser was purchasing because of the tenants
If a relationship is based on trust can silence be a misrepresentation (case)?
Yes
Tate v Williamson
What is the case of Tate v Williamson?
Financial advisor told client to sell land at low price not informing he would be the one purchasing was a breach of trust so a misrepresentation
In what instance do all facts need to be disclosed whether asked of or not (case)?
When the contract is of “utmost good faith” (uberrimae fidei)
Lambert v Co-operative Insurance Society
What is the case of Lambert v Co-operative Insurance Society?
Women renewing insurance on jewellery omitted to inform insurer her husband was a convict which would have changed the insurers decision and premium so misrepresentation
Does a statement of misrepresentation have to be verbal or written (case)?
Can be anything that influences a decision
Spice Girls Ltd v Aprilia World Service BV
What is the case of Spice Girls v Aprilia World Service BV?
SG signed sponsorship agreement with Aprilia, one had given notice to leave, filmed add then they they left making add worthless, by all of them attending the group represented none would leave (conduct)
What type of fact does a misrepresentation need to be?
A material fact
What two cases are examples of material facts? (2)
Bisset v Wilkinson
Edgington v Fitzmaurice
What is the case of Bisset v Wilkinson?
Seller of farmland not expert asked No. of sheep field could fit said 2000 which was false. Was not misrepresentation as was his genuine opinion
What is the case of Edgington v Fitzmaurice?
Claimant invested in firm who said investment would be used to complete alterations of premises but was instead used to pay of dept. Did not have intention to make alterations so misrep
Can a person be liable if the statement was made by a 3rd party?
Not liable unless their agent
What case is an example of a third party making the statement of misrepresentation?
Atwood v Small
What is the case of Attwood v Small?
Seller of mine made false statement about it which he had backed up by surveyor who was incorrect. No misrepresentation as relied on surveyor report
Is a misrepresentation still a misrep if victim could have found truth themselves (case)?
Yes Redgrave v Hurd
What is the case of Redgrave v Hurd?
Purchaser of solicitor practice given untrue statements about earnings relied on statement not financial doc which would have shown he was wrong
