Vitiating Factors: Misrepresentation Flashcards
What is a vitiating factor?
Makes a contract void or voidable - no legal standing
E.g misrepresentation, economic duress
Misrepresentation
False statement of material fact that induces the other party to enter contract
- contract valid unless person who suffered the misrepresentation takes action to end the contract
False statement
Silence cannot be a misrepresentation
Anything said about what is being offered must be true
Fletcher v krell
Didn’t say divorced, under no duty to disclose
Silence cannot be misrepresentation
With v o’Flanagan
Must correct information where it can been changed
Maker of the statement has a duty to reveal the whole truth of the situation
Dimmock v hallet
Part truth was a misrepresentation
Seller told truth that tenants were on land making it more valuable but didn’t mention they were leaving
Tate v Williamson
Where relationship based on trust, silence can be a misrepresentation
Advised client to reduce price so he could buy it
Lambert v co-operative insurance society
Jewellery insurance - husband convicted of stealing
Silence about conviction was a misrepresentation
Spice girls ltd v Aprilia world service BV
Sponsorship - 1 spice girl leaving
By all attending, suggested none of them were leaving - misrepresentation
Bisset v Wilkinson
Guessing how many sheep field could hold
Opinion believed to be accurate not a misrepresentation
Edgington v fitzmaurice
Falsely stated use of investment
Statement of fact rather than future intention - didn’t have intention to make alterations - misrepresentation
Made by party to the contract
Not liable for statements made by others unless they are their agent
E.g newspaper review cannot be misrepresentation
Atwood v small
Surveyor to check statement
No misrepresentation- purchaser relied on survey report not seller
Redgrave v Hurd
Entitled to rely on sellers statement
museprime
what reasonable person would rely on is irrelevant
misleading omissions
- omit infor average consumer needs to make decisions
- hide material fact in unclear, unintelligible, ambiguous, untimely manner
- fails to identify the commercial intent of the commercialpractice
innocent misrep
genuinely held on reasonable grounds
remedy - recision OR damages
negligent misrep
no reasonable grounds to believe true
1. under common law tort ofg negligence
2. misrepresentation act 1967
3.
negligence misrep under common law
hedley byrne v heller - claim fro misrep based on negligence allowed
misrepresentation act 1967
s2 (1) Misrepresentation act - all tyat is needed is a misrep which results in contract + victim suffers loss
burden on person making statement for why believed true
fraudulent misrep
derry v peek - statement which person making representation knows to be untrue, or reckless to wether or not true
greenridge luton one ltd v kempton investments ltd - buyer of commercial property entitled to return of deposit and award damages
