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Contract Law > Misrepresentation & Economic Duress > Flashcards

Misrepresentation & Economic Duress Flashcards

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1
Q

What is a vitiating factor?

A

Makes a contract void or voidable

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2
Q

What is a misrepresentation?

A

A false statement of material fact made by a party to the contract that induces the other party to enter the contract

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3
Q

Does a statement have to be false for it to be misrepresentation?

A

Yes

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4
Q

Can silence or omitting to state something not asked for be a misrepresentation (case) ?

A

No
Fletcher v Krell

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5
Q

What is the case of Fletcher v Krell?

A

Women applied for job did not state she was divorced no misrepresentation as no duty to disclose marital status

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6
Q

Can a statement becomes a misrepresentation if it becomes false before the contract is made (case)?

A

Yes With v O’Flanagan

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7
Q

What is the case of With v O’Flanagan

A

Doctor accurately stated profits of practice but was ill so they were lower than stated. Needed to tell purchaser of new profit.

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8
Q

When can silence be a misrepresentation (case)?

A

If what is said is a half truth and therefore they are not disclosing something
Dimmock v Hallett

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9
Q

What is the case of Dimmock v Hallett?

A

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

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10
Q

If a relationship is based on trust can silence be a misrepresentation (case)?

A

Yes
Tate v Williamson

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11
Q

What is the case of Tate v Williamson?

A

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

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12
Q

In what instance do all facts need to be disclosed whether asked of or not (case)?

A

When the contract is of “utmost good faith” (uberrimae fidei)
Lambert v Co-operative Insurance Society

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13
Q

What is the case of Lambert v Co-operative Insurance Society?

A

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

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14
Q

Does a statement of misrepresentation have to be verbal or written (case)?

A

No anything that influences a decision
Spice Girls Ltd v Aprilia World Service BV

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15
Q

What is the case of Spice Girls v Aprilia World Service BV?

A

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)

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16
Q

What type of fact does a misrepresentation need to be?

A

A material fact

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17
Q

What two cases are examples of material facts? (2)

A

Bisset v Wilkinson
Edgington v Fitzmaurice

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18
Q

What is the case of Bisset v Wilkinson?

A

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

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19
Q

What is the case of Edgington v Fitzmaurice?

A

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

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20
Q

Can a person be liable if the statement was made by a 3rd party?

A

Not liable unless their agent

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21
Q

What case is an example of a third party making the statement of misrepresentation?

A

Atwood v Small

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22
Q

What is the case of Attwood v Small?

A

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

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23
Q

Is a misrepresentation still a misrep if victim could have found truth themselves (case)?

A

Yes Redgrave v Hurd

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24
Q

What is the case of Redgrave v Hurd?

A

Purchaser of solicitor practice given untrue statements about earnings relied on statement not financial doc which would have shown he was wrong

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25
Q

What case decided what the reasonable person would or would not have done to acquire truth is irrelevant?

A

Museprime Properties Ltd v Achilles Properties Ltd

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26
Q

What is the case of Museprime Properties Ltd v Achilles Properties Ltd?

A

Purchaser relied on untrue statement about rent made at auction. Argued no reasonable person would rely on info however the purchaser was reliant on statement so misrep

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27
Q

What section of The Consumer Rights Act 2015 covers pre contract information?

A

S12

28
Q

What are the three types of misrepresentation?

A

Innocent
Negligent
Fraudulent

29
Q

What is an innocent misrepresentation?

A

Misrepresentation held on reasonable grounds. False statement made honestly

30
Q

What is a negligent misrepresentation?

A

Not fraudulent innocent misrepresentation, not deliberate lie

31
Q

What is the case of Hadley Byrne v Heller & Partners?

A

Claim for misrepresentation based on negligence allowed

32
Q

What does S2(1) of the Misrepresentation act 1967 state

A

Can claim for negligent misrep without special relationship between parties

33
Q

Howard Marine v Ogden & Sons?

A

Can’t blame third parties info for being wrong if you have your own source that is correct. Dredger capacity

34
Q

What is a fraudulent misrepresentation?

A

Making misrepresentation you know to be untrue, reckless

35
Q

Derry v Peek

A

Thought would be allowed to use motor driven trams, got investment for trams but not authorised not negligent

36
Q

What case says that a fraudulent misrepresentation can be an overly rose tinted view?

A

Greenridge Luton One Ltd v Kempton Investments Ltd

37
Q

Remedies from innocent misrepresentation?

A

Rescission or damages

38
Q

Four reasons recession is not allowed?

A

Restitution impossible
Contract is affirmed
Delay
Third party gained rights to property

39
Q

What case relates to original pre contract position impossible?

A

Clarke v Dickinson

40
Q

Clarke v Dickinson

A

Misled in becoming partner could not return the partnership as firm became Ltd

41
Q

What case relates to the contract is affirmed?

A

Long v Lloyd

42
Q

Long v Lloyd

A

Lorry broke down defendant offered to pay half the repairs. Broke down again but couldn’t rescind as had persevered showing willingness to continue with contract

43
Q

What case relates to delay?

A

Leaf v International Galleries

44
Q

Leaf v International Galleries

A

Bought painting thought to be by Constable. Realised fake when tried to dell 5 yrs later. Rescission not allowed due to delay

45
Q

What case relates to a third party having gained rights to the property?

A

Lewis v Avery

46
Q

Lewis v Avery

A

Sold car for worthless cheque, when tried to rescind couldn’t as car already sold on to another so unfair to deprive 3rd party

47
Q

Does everyone have the right of damages for an innocent misrepresentation?

A

No under courts discretion

48
Q

Government of Zanzibar v British Aerospace

A

Damages awarded in place of rescission

49
Q

What are the three ways a person can be wrongly “forced” into a contract?

A

Undue influence
Duress
Economic duress

50
Q

What is Undue influence?

A

One party exploits their dominant position

51
Q

What is Duress?

A

When a party alleges they have been forced into a contract due to threats

52
Q

What is economic duress?

A

When someone enters into a contract due to financial threats

53
Q

What is economic duress?

A

When someone enters into a contract due to financial threats

54
Q

Allcard v Skinner

A

Novice nun gives all money to mother superior. Not on the ground of wrongful act but of public policy as abused influence

55
Q

Barton v Armstrong

A

Death threats made

56
Q

Skeate v Beatle

A

Threats to property not duress

57
Q

The Siboen and the Sibotre

A

Serious threats considered duress

58
Q

Atlas Express v Kafco

A

Delivery confirmed but later insisted minimum quantities. Insisted through economic duress.

59
Q

Universal Tankships v International Transportation Workers Federation

A

Workers blocked ship leaving port until pay agreement met. Ship owners agreed but money extracted under economic duress

60
Q

What case relates to illegitimate pressure

A

Pro on v Lau yiu Long

61
Q

Pao on v Lau yiu Long

A

Factors of illegitimate pressure
-c protested of pressure
-any available course of action that was reasonable
-was c independently advised before decision
-after entering did they take steps to make contract void

62
Q

CTN Cash & Carry v Gallagher

A

(Old law) duress was not available when action threatened lawful

63
Q

Progress Bulk Carriers Ltd v Tube City

A

Illegitimate pressure can be constituted by conduct which is not in itself unlawful (delays making a ship available)

64
Q

Can you receive damages as a remedy for economic duress?

A

No can have restitution restoring the person to their original state

65
Q

The Atlantic Baron

A

Delay defeats equity (delay of 8 months) lose right to rescind

Contract Law (5 decks)

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