Statements of law - Misrepresentation

Question 1

What was the past perception of statements of law?

Answer 1

It was often said in the past that statements of law did not amount to misrepresentations even where they were false

Question 2

What was the correct position clarified in Benson Ltd v Lincoln City Council?

Answer 2

that a purely abstract statement as to the law cannot be a misrepresentation; but that an incorrect statement as to how the law applies to a particular set of facts can be a misrepresentation.

Question 3

What was held in the case of

Answer 3

Here the seller of a car park told the buyer that any occupier of the property would be regarded in law as a ‘contractual licensee’ whose occupation could be terminated with three months’ notice. In fact, applying the law to the facts correctly meant that an occupier would be a protected business tenant whose tenancy could not be terminated in the way described. This was not simply a (false) abstract statement as to the law. It was a false statement as to how the law applied to a particular set of circumstances. As such it was held to be an actionable misrepresentation.