U4B: Vitiating Factors: Misrepresentation & Economic Duress Flashcards
What are the 4 conditions of Actionable Misrepresentation?
- A statement of material fact
- …which is false or misleading
3….made prior to the contract
4…. which induced the other to enter the contract
What is (1) a statement of material fact?
A FACT THAT:
-Would be to a reasonable person central to the decision to enter a contract, and
-Did influence the mind of the person making the contract
What WOULDN’T count as a (1) misrepresentation, and what is said about them?
AN OPINION:
-a false statement of opinion is not a misrepresentation as to fact.
What is a case study for a statement that was an OPINION rather than misrepresentation (1)?
-Bissett v Wilkinson
-Statement= opinion, NOt misrepresentation
What are the exceptions to opinions NOT being misrepresentation?
-Specialists/ those with specialist knowledge
What is the ruling and case example for specialists?
Esso v Mardon
-Those with specialist knowledge make statements CAN BE misrepresentation
- ‘beware specialist knowledge’
What is the ruling on statements of future intent AND the exception with its case example?
-Statement of future intent- a statement which expresses a afture intention is speculation rather than fact
HOWEVER: EXCEPTION: CAN be misrepresentation if the person making the statement KNOWS its a lie- Edgington v Fitzmaurice
What is the ruling on ‘Sales talk’?
-Courts treat ‘sales talk’ as idle boasts and have NO contractual significance
What is a case example for ‘Sales Talk’ and what was the ruling?
-Dimmock V Hallett: No contractual significance
What is the exception for ‘Sales Talk’ of future intent and the case?
-Carlill v Carbolic Smoke Ball
What does the second element of Misrepresentation, (2) False statements mean?
False statements:
-Must be untrue or misleading
-Untrue or inaccurate
Can silence/non-disclosure be a misrepresentation/false statement?
Silence/non-discloseure CANNOT be a misrepresentation:
-Generally, no obligation to make any statement about what is being offered
-Anything they do choose to
say, must be true
What is a case example for non-disclosure AND the ruling?
-Keates v Cadogan: no obligation
What are the 4 exceptions to the general ruling of non-disclosure?
-Change of circumstances
-Half-truths
-Fiduciary relationship/ Contracts of utmost good faith
What is the exception of ‘Change of circumstances’ in non-disclosure AND case example?
-Situations where the statment was true when made, but false by the time the contract was formed
-With v O’Flanagan: WAS misrepresentation
What is the exception of ‘Half-Truths’ in non-disclosure AND case example?
-Statements which do not represent the WHOLE truth and affects the weight of those truths stated
-Notts Patent Brick and Tile Co. V Butler: half-truth WAS misrepresentation
What is the exception of ‘Fiduciary Relationships’, examples and case AND Contracts of utmost good faith in non-disclosure and case?
-Where the relationship is based on trust in a professional capacity
Tate V Williamsoon
EG: Solicitor-client
Partners ina partnership
Financial advisor- client
-Contracts of utmost good faith= typically when one party is in a strong position to know the truth and the other is ina weak position
Lambert Co-Op
What does the Consumer Insurance (Disclosure and Representations) Act 2012 cover?
-Insurance contracts
-Insurance still valid if consumer DIDN’T REALISE the other party SHOULD have disclosed information
-If consumer has deliberately lied, insurance company can avoid the contract and keep any instalements paid
What is the exception of ‘Made prior to the contract’ in non-disclosure AND case example?
-Misrepresentation must be made BEFORE the contract is* formed*
-Roscorla v Thomas
What is the 4th element of
What does ‘Inducement into the contract’ mean?
-Claimant must have relied upon or been induced to enter the contract because of, the false statement of fact
What must the claimant do
