Vitiating Factors - contract Flashcards
Fraudulent Misrepresentation
False statements knowingly made
Derry v Peck
Fraudulent Misrepresentation
Overly Optimistic view of the position
Greenridge Luton One v Kempton Investments
Must prove false statement
During Pre-contractual & in any form that will influence decisions
Spice Girls v Aprilla
Must prove false statement
Must be false - silence does not amount/no obligation to give info
Fletcher v Krell
Must prove false statement
Once a statement has been made, even if it is true when it is made, it can become a misrep. if it becomes false before the contract is made
With and O’Flanagan
Must prove false statement
Half-truth. There is a duty to report whole truth of situation
Dimmock v Hallett
Statement must relate to material fact of the contract
if of opinion are not a misrep.
Bisset v Wilkinson
Statement must relate to material fact of the contract
if the opinion was not honestly held = misrep.
especially if presented as having specialist knowledge
Smith v Land and House Property Corporation
must induce to enter
persuade into contract
Attwood v Small
must induce to enter
doesn’t matter if v could have discovered truth with reasonable steps
Redgrave v Hurd
Innocent Misrep.
Remedy of rescission not available if Restitution to position pre-contract is impossible
Clarke v Dickinson
Innocent Misrep.
Remedy of Rescission
Not available if the contract is affirmed (happy with contract as stands)
Long v Lloyd
Innocent Misrep.
Remedy of Rescission
Not available if the contract has a time delay between formation of contract and discovery of misrep.
Leaf v International Galleries
Innocent Misrep.
Remedy of Rescission
Not available if the contract if an innocent third party had gained rights over property
Lewis v Averay
Fraudulent misrepresentation
Recission and damages and put v in position before misrepresentation
East v Maurer
Damages for negligent misrepresentation
Misrepresentation Act 1967 s2(1)
Gives court discretion for damages awarded (neg or innocent)
Misrepresentation Act 1967 S2(2)
Damages of misrepresentation
sindall v Cambridge County Council
Economic duress
A contract isn’t enforceable
North Ocean Shipping v Hyundai Construction
Economic pressure causing to make the contract
Progress Bulk Carriers v Tube City
