Misrepresentation- Invalidating Factor

Question 1

Two types of invalidating factors

Answer 1

A void contract

A voidable contract

Question 2

What is a void contract

Answer 2

A contract that never existed

Question 3

What is a voidable contract

Answer 3

A contract that does exist and will continue to exist unless one party decides to rescind the contract

Question 4

Case where contract was voidable by conduct

Answer 4

Car and universal finance v Caldwell

Question 5

What is misrepresentation

Answer 5

An untrue statement of fact or law which is made by a contracting party to another intended to induce and does induce the other party into entering the contract

Question 6

What case showed misrepresentation by conduct

Answer 6

Gordon v Selico

Question 7

Name 3 matters which are not misrepresentation

Answer 7

Statement of opinion

Statement of intention

Extravagant advertisements

Question 8

Statement of opinion case

Answer 8

Bissett v Wilkinson

Question 9

Statements of opinion based on facts

Answer 9

Cheerilow ltd v Butler Creagh

Question 10

Statement of intention example

Answer 10

Decorator intends to use type of brand but if brand not available will use next best thing

Question 11

Extravagant advertisements example

Answer 11

Meer puffs

Question 12

What is caveat emptor

Answer 12

Let the buyer beware

Question 13

Caveat emperor example

Answer 13

Sykes v Taylor Rose

Question 14

Which act amended the caveat emptor to say a retailer should not mislead a consumer

Answer 14

Consumer protection from unfair trading regulations 2008

Question 15

Half truth case example

Answer 15

Nottingham patent Brick and time co v Butler

Question 16

Statement is accurate when made but circumstances change case example

Answer 16

With v O’Flanagan

Question 17

Utmost good faith in disclosure of information example

Answer 17

In insurance the consumer must disclose all necessary information. If they don’t the contract is voidable

Question 18

What is the CI D R A 2012 S 2(2) and (3)

Answer 18

Consumer insurance disclosure and representations act 2012

(2) consumer must take care not to cause misrepresentation
(3) failure to comply with insurers to amend information is misrepresentation

Question 19

What is a fiduciary relationship

Answer 19

Where one party has complete trust in the other (a duty of disclosure)

Question 20

Duty to disclose case example

Answer 20

Hamilton v Allied Domecq

Question 21

Inducement examples do not amount to misrepresentation

Answer 21

Unaware of existence of false statements

Where representee checks the information given which is false

When representee knows it’s false

Question 22

Unaware of existence of false statement case example

Answer 22

Re Northumberland and Durham Banking Co

Question 23

Checked facts for himself case example

Answer 23

Atwood v Small

Question 24

Representee doesn’t check statement is true when they gave it case example

Answer 24

Redgrave v Hurd

Reasonable for the person receiving statement to rely upon it smith v Eric S Bush

Question 25

Types of misrepresentation

Answer 25

Fraudulent
Negligent
Innocent

Question 26

Act that covers misrepresentation

Answer 26

Misrepresentation Act 1967

Question 27

Fraudulent misrepresentation how it is determined and the case

Answer 27

Derry v Peek

1) knowing false statement is made
2) statement is made without belief or truth
3) statement is make with reckless carelessness

Question 28

How can a claimant prove fraudulent misrepresentation? (Case)

Answer 28

The claimant must only demonstrate he has been influenced by misrepresentation

Hayward v Zurich Insurance

Question 29

Remedies for fraudulent misrepresentation

Answer 29

Damages and it seem rescission

Question 30

Damages awarded for fraudulent misrepresentation in tort if deceit case

Answer 30

Smith and new court securities v scrimgeour vickers

Question 31

When can remedy of rescission be lost on fraudulent misrepresentation

Answer 31

Is contract had opportunity to rescind contract but didn’t

For innocent and negligently misrepresentation for lapse of time

If the parties cannot be restored to prior position

If innocent party had acquired rights to the subject matter

Question 32

What part of the MA 1967 is negligently misrepresentation claimed under

Answer 32

S 2 (1) MA 1976

Question 33

Negligently misrepresentation case example

Answer 33

Howard Marine and dredging co Ltd v A Ogden and Sons

Question 34

What is required to prove negligent misrepresentation

Answer 34

The person making the statement must prove he had reasonable grounds to believe the statement at the time it was made

Question 35

If statement giver can prove that the statement given at the time it was made was believed to be true what type is misrepresentation Is this

Answer 35

Innocent misrepresentation

Question 36

Which act states that a person will not be entitled to a remedy of misrepresentation if it can be recovered from their act

Answer 36

Part 4A consumer protection from unfair trading regulations 2008

Question 37

Remedies for negligent misrepresentation

Answer 37

Damages and or rescission

Question 38

Remedies available in innocent misrepresentation

Answer 38

Rescission or damages in lieu of rescission