misrepresentation - vitiating factor

Question 1

vitiating factor makes a contract

Answer 1

void/voidable

Question 2

representation

Answer 2

statements made pre-contract which persuaded the party to enter into the contract

Question 3

representation becomes misrepresentation when

Answer 3

the statement is false

Question 4

4 things a C must prove to establish that there has been a misrepresentation:

Answer 4

1. a false statement
2. of material fact
3. made by one of the parties to a contract
4. which induced the C to enter the contract

Question 5

1. must be a false statement

Answer 5

a statement that is not true - doesn’t matter if the person who said it did or did not realise it was untrue
false statement doesn’t need to be written or verbal

Question 6

Spice Girls Ltd v April World service

Answer 6

Filming took place with all of the spice girls and then when the one left it made the material worthless.
By all of them attending it represented tat none of them intended on leaving + none of them were aware of one leaving.
MISREPRESENTATION

Question 7

silence

Answer 7

cannot be a ‘false statement’

Question 8

Fletcher v Krell

Answer 8

a woman applied for a job of governess. She wasn’t asked + did not state she was divorced. In victorian times it means she’d not be offered a job. There was no MISREPRESENTATION as she was under no duty to disclose her mental state + had not been asked about it.

Question 9

exceptions to the rule that silence cannot be a false statement:

Answer 9

1. circumstances change
2. half truth
3. relationship between parties is based on trust
4. Uberrimae Fidei contracts

Question 10

1. where the circumstances change

Answer 10

if a true statement has already been made but it becomes untrue before the contract is agreed and D does not declare this, the Ds silence will be seen as a false statement.

Question 11

With v O’Flanagan

Answer 11

Dr accurately stated the profits of his medical practice to induce purchasers to buy it. Between the statement + the contract Dr became ill + lost many patients. This made the original statement untrue.
He has to tell the purchaser of the changed situation.

Question 12

a Half truth

Answer 12

making a statement which is not the whole truth

Question 13

Dimmock v Hallett

Answer 13

a seller of land told the purchaser truthfully that there were tenants on the land. This is exactly what the purchaser wanted. He didn’t tell him all the tenants were leaving.
This half truth was misrepresentation

Question 14

3. relationship of trust between the parties e.g. solicitor, financial advisor

Answer 14

keeping silent about any relevant fact can be misrepresentation

Question 15

Tate v Williamson

Answer 15

financial adviser advised his client to sell some land for less than half its value so the client could clear his debts. The adviser then purchased the land himself but did not tell his client that had done so.
Breach of trust therefore, misrepresentation

Question 16

4. Uberrimae Fidei contracts

Answer 16

‘utmost faith’ - all material facts must be disclosed whether asked about or not

Question 17

Lambert v Co-op Insurance

Answer 17

Woman renewed her jewellery insurance policy. She didn’t tell the insurance company that her husband had recently been convicted of conspiracy to steal. This is an important factor which would’ve affected their decision on whether to renew the insurance + at what premium.
Her silence about the conviction was misrepresentation

Question 18

under Consumer Insurance (disclosure and representations)
Act 2012

Answer 18

a ‘consumer’ only needs to disclose info when asked to do so

Question 19

it must be a statement of…

Answer 19

Material fact - not just opinion

Question 20

Bissett v Wilkinson

Answer 20

the seller of farmland was asked how many sheep could fit on it but he’d never had sheep. He stated he though it’d support about two thousand - this turned out to be false
As he genuinely believed his opinion to be accurate, it wasn’t a misrepresentation

Question 21

it must have been made by…

Answer 21

someone who is party to a contract

Question 22

it must have induced…

Answer 22

the other party to enter the contract

Question 23

Attwood v Small

Answer 23

seller made false statement to the purchaser about the earnings from his mine. Buyer instructed the survey to confirm this statement, which he did incorrectly. The purchaser brought the mine + then discovered the statement to be untrue.
No misrepresentation as the purchaser relied on the surgery report + not the seller statement.

Question 24

Redgrave v Hurd
This point can still be proved even if C could reasonably have checked to see if the statement was true

Answer 24

The purchaser of a solicitors practice was given set accounts to look at. Seller verbally misled the purchaser as to the true earnings. Purchaser relied on this statement + didn’t look at the accounts but if he did he would’ve seen the statement was incorrect.
He was entitled to rely on the sellers statement, and because this was untrue it was misrepresentation.