Misrepresentation - Paper 3 Flashcards
What is the definition of Misrepresentation?
When a party to a contract has made an untrue statement during negotiations, on which the other party has relied and was induced by it to enter the contract
What is Stage 1 of Misrepresentation?
There must be a false statement of fact, meaning it was untrue
Which case held an opinion cannot be a misrepresentation?
Bissett v Wilkinson
What was the decision in Edgington v Fitzmaurice?
If you say something with no intention of doing it, this is a misrepresentation
What is the key case which demonstrates misrepresentation by actions or conduct?
Spice Girls v Aprilia World
What was decided in Fletcher v Krell?
Silence cannot be a misrepresentation
Is a part truth a misrepresentation?
Yes, if you do not reveal the whole truth, a part truth can be a misrepresentation (Dimmock v Hallett)
Which case held a statement that is true when made can become a misrepresentation if it becomes false before the contract is made?
With v O’Flanagan
What are contracts of insurance examples of?
Contracts made of ‘utmost good faith,’ meaning all material facts must be disclosed whether they have been asked for or not
What was the decision in Tate v Williamson?
A relationship based on trust is more likely to be a misrepresentation
What is Stage 2 of Misrepresentation?
The misrepresentation must induce you to enter the contract
What was held in Attwood v Small?
The statement must lead the other into making the contract, and must be a critical part of making the decision
What is Stage 3 of Misrepresentation?
You must identify the type of misrepresentation
What are the three types of misrepresentation?
Fraudulent, Negligent, Innocent
What is fraudulent misrepresentation?
A statement made without belief in the truth, e.g. you know it to be untrue, or you are reckless as to whether or not it is true
