SELLER - PRE-CONTRACT SEARCHES & ENQUIRIES

Question 1

WHAT STAGE OF THE LSCP IS USED IN THIS STAGE OF THE TRANSACTION?

Answer 1

Stage B (pre-exchange)

Question 2

HOW COULD LIABILITY ARISE IN RESPECT OF INCORRECT REPLIES TO THE PRE-CONTRACT ENQUIRIES?

Answer 2

1. May be liable under the Misrepresentation Act 1967.
2. Could be liable in negligence (Wilson v Bloomfield [1979]).
3. Some printed pre-contract enquiries forms carry a disclaimer.
4. SCS 7.1 deals with remedies for misdescription and misrepresentation
5. SCS 6 states that neither party can rely on any representation made by the other unless it was made in writing