Vitiating Factors - Misrepresentation

Question 1

Misrepresentation definition

Answer 1

A false statement of material fact made by one party of the contract to induce another party to enter the contract

Question 2

Misrepresentation elements

Answer 2

1. False statement
2. Made by one party to the contract
3. Induces another party to enter the contract

Question 3

Spice Girls Ltd v Aprilia World Service BV (2000)

Answer 3

Statement must be false

Question 4

Bisset v Wilkinson (1927)

Answer 4

Statement cannot be an opinion

Question 5

Edgington v Fitzmaurice (1885)

Answer 5

The statement cannot be a statement expressing future intention to do something (unless at the time of making it the party knew that they would not do the thing that is promised).

Question 6

Attwood v Small (1838)

Answer 6

Induces another party to enter the contract

Question 7

Fraudulent misrepresentation

Answer 7

A statement made without belief in the truth of the statement.

Question 8

Negligent misrepresentation

Answer 8

A statement made without belief in the truth of the statement (s.2(1) Misrepresentation Act)

Question 9

Innocent misrepresentation

Answer 9

S.2(1) MA 1967 states that an innocent misrepresentation is one where the maker of the statement has reasonable grounds to believe it to be true.

Question 10

Remedy for fraudulent and negligent misrepresentation

Answer 10

Damages and recision (recision discretion of the court)

Question 11

Remedy for innocent misrepresentation

Answer 11

Damages and recision (both at the discretion of the court)

Question 12

When recision will not be equitable

Answer 12

Where returning to the original pre-contract position is impossible.

The contract is affirmed (the claimant chooses to continue the contract)

Delay

The innocent third party has acquired rights in the goods