Misrepresentation- Invalidating Factor Flashcards
Two types of invalidating factors
A void contract
A voidable contract
What is a void contract
A contract that never existed
What is a voidable contract
A contract that does exist and will continue to exist unless one party decides to rescind the contract
Case where contract was voidable by conduct
Car and universal finance v Caldwell
What is misrepresentation
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
What case showed misrepresentation by conduct
Gordon v Selico
Name 3 matters which are not misrepresentation
Statement of opinion
Statement of intention
Extravagant advertisements
Statement of opinion case
Bissett v Wilkinson
Statements of opinion based on facts
Cheerilow ltd v Butler Creagh
Statement of intention example
Decorator intends to use type of brand but if brand not available will use next best thing
Extravagant advertisements example
Meer puffs
What is caveat emptor
Let the buyer beware
Caveat emperor example
Sykes v Taylor Rose
Which act amended the caveat emptor to say a retailer should not mislead a consumer
Consumer protection from unfair trading regulations 2008
Half truth case example
Nottingham patent Brick and time co v Butler
Statement is accurate when made but circumstances change case example
With v O’Flanagan
Utmost good faith in disclosure of information example
In insurance the consumer must disclose all necessary information. If they don’t the contract is voidable
What is the CI D R A 2012 S 2(2) and (3)
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
What is a fiduciary relationship
Where one party has complete trust in the other (a duty of disclosure)
Duty to disclose case example
Hamilton v Allied Domecq
Inducement examples do not amount to misrepresentation
Unaware of existence of false statements
Where representee checks the information given which is false
When representee knows it’s false
Unaware of existence of false statement case example
Re Northumberland and Durham Banking Co
Checked facts for himself case example
Atwood v Small
Representee doesn’t check statement is true when they gave it case example
Redgrave v Hurd
Reasonable for the person receiving statement to rely upon it smith v Eric S Bush
Types of misrepresentation
Fraudulent
Negligent
Innocent
Act that covers misrepresentation
Misrepresentation Act 1967
Fraudulent misrepresentation how it is determined and the case
Derry v Peek
1) knowing false statement is made
2) statement is made without belief or truth
3) statement is make with reckless carelessness
How can a claimant prove fraudulent misrepresentation? (Case)
The claimant must only demonstrate he has been influenced by misrepresentation
Hayward v Zurich Insurance
Remedies for fraudulent misrepresentation
Damages and it seem rescission
Damages awarded for fraudulent misrepresentation in tort if deceit case
Smith and new court securities v scrimgeour vickers
When can remedy of rescission be lost on fraudulent misrepresentation
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
What part of the MA 1967 is negligently misrepresentation claimed under
S 2 (1) MA 1976
Negligently misrepresentation case example
Howard Marine and dredging co Ltd v A Ogden and Sons
What is required to prove negligent misrepresentation
The person making the statement must prove he had reasonable grounds to believe the statement at the time it was made
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
Innocent misrepresentation
Which act states that a person will not be entitled to a remedy of misrepresentation if it can be recovered from their act
Part 4A consumer protection from unfair trading regulations 2008
Remedies for negligent misrepresentation
Damages and or rescission
Remedies available in innocent misrepresentation
Rescission or damages in lieu of rescission
