Remedies

Question 1

remedies for innocent misrepresentation

Answer 1

recission
restitution to original precontract position is impossible
contract is affirmed
delay
third party has rights over the property

Question 2

recission explanation

Answer 2

an equitable remedy, courts will only award if its fair to do so in circumstances. it wont be available in the below circumstances.

Question 3

restitution to original precontract position is impossible

Answer 3

where restitution is not possible recission will not be available

Question 4

Clarke v Dickson

Answer 4

facts: Clarke was misled into buying shares by the defendant’s false statement. When financial troubles arose, Clarke sought to recover his money
held: unlike returning a purchased item, rescinding the contract for worthless shares was not allowed.

Question 5

contract is affirmed explanation

Answer 5

if an innocent party continues with the contract despite knowing of the misrepresentation they cannot seek recission

Question 6

Long v Lloyd

Answer 6

facts:
The claimant bought a lorry, advertised as exceptional, from the defendant. Despite discovering faults, the claimant still purchased it.
held: no claim
principle: if a buyer, aware of defects, accepts partial payment for repairs, they may lose the right to rescind the contract for innocent misrepresentation, affirming the agreement.

Question 7

delay explanation

Answer 7

if equity delay defeats equity, once contract is completed complaints must arise shortly after, if time elapses its assumed there are no major problems

Question 8

Leaf v International Galleries

Answer 8

facts: The claimant bought a painting from the defendant, and they both believed it was done by a famous artist. 5 years later it was found it was not done by any famous painter, so the claimant bought an action of misrepresentation
held: The claim for innocent misrepresentation succeeded, BUT the claimant could not rescind the contract due to lapse of time

Question 9

third party has rights over the property explanation

Answer 9

if someone else has an interest in the property (rights) it would not be fair to rescind the contract

Question 10

Lewis v Averay

Answer 10

facts:
C sold his Mini Cooper to someone pretending to be Richard Greene. Despite a fake studio pass, the imposter gave a dishonoured cheque and sold the car to C. C sought the car’s return, claiming a void contract due to a mistake.
held: court disagreed
principle: transactions are based on dealing with the person physically present, even if there is a mistake involved.