Misrepresentation & Mistake Flashcards
What is misrepresentation?
False/misleading statements made during contract negotiations
Esso v Marden
Their expert knowledge turned a statement of opinion into a statement of fact
Marden relied on the information
Bisset v Wickerson (1927)
Statement of opinion about how many sheep could go on the land
Sheep had never been on the land before
Edington v Fitzmaurice
A lie changes a statement of intention into a statement of fact
Wales v Wadham (1977)
Wife made a statement of intention not to get remarried
Statement of intentions can change
Couldn’t prove that this wasn’t her intention
With v O’flanagan (1936)
There is a duty to disclose when a statement of fact is no longer true
Hospital annual profit of £2000
Spice Girls v Aprile (2000)
Misrepresentation by conduct
Types of misrepresentation
A)
B)
C)
A) Fraudulent
B) Innocent
C) Negligent
Misrepresentation makes the contract….
VOIDABLE
Affirmation
Leaf v International Gallaries
5 years was too long
Affirmation
Salt v Strastone (2015)
Car
Time lapse didn’t count because of “practical justice”
Misrepresentation aims to put …
parties back in their pre-contractual position (rescinding the contract)
William Sindall v Cambridgeshire
Paid damages rather than rescission
Couturier v Hastie (1856)
Sale of cargo corn that didn’t exist
McRae v Commonwealth Disposals Commission (1951)
The weight of the obligation fell on one party and therefore couldn’t be voidable for misreprsentation
Cooper v Phibbs (1867)
Claimant already owned the fishery
Raffles v Wichelhaus (1864)
Two ships called ‘peerless’
The objective person wouldn’t be able to tell the difference
Mistake in offer and acceptance makes the contract…
VOID
Hartog v Collins + Shields (1939)
Large quantities of hare skins sold at the wrong price
Fundamental knowledge this was wrong
Shogun Finance v Hudson (2004)
Held to be a written contract so Hudson had to give back his car - Void from the start
Cunday v Lindsay (1878)
Void for mistake - identity is crucial
King Norton Metal v Edridge
Attributes
Not mistake but misrepresentation
Attributes
Not mistake but misrepresentation
King Norton Metal v Edridge
Void for mistake - identity is crucial
Cunday v Lindsay (1878)
Held to be a written contract so Hudson had to give back his car - Void from the start
Shogun Finance v Hudson (2004)
Large quantities of hare skins sold at the wrong price
Fundamental knowledge this was wrong
Hartog v Collins + Shields (1939)
Two ships called ‘peerless’
The objective person wouldn’t be able to tell the difference
Raffles v Wichelhaus (1864)
Claimant already owned the fishery
Cooper v Phibbs (1867)
The weight of the obligation fell on one party and therefore couldn’t be voidable for misreprsentation
McRae v Commonwealth Disposals Commission (1951)
Sale of cargo corn that didn’t exist
Couturier v Hastie (1856)
Two ships called ‘peerless’
The objective person wouldn’t be able to tell the difference
Raffles v Wichelhaus (1864)
