Vitiating Factors: Misrepresentation

Question 1

What is a vitiating factor?

Answer 1

Makes a contract void or voidable - no legal standing
E.g misrepresentation, economic duress

Question 2

Misrepresentation

Answer 2

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

Question 3

False statement

Answer 3

Silence cannot be a misrepresentation
Anything said about what is being offered must be true

Question 4

Fletcher v krell

Answer 4

Didn’t say divorced, under no duty to disclose
Silence cannot be misrepresentation

Question 5

With v o’Flanagan

Answer 5

Must correct information where it can been changed
Maker of the statement has a duty to reveal the whole truth of the situation

Question 6

Dimmock v hallet

Answer 6

Part truth was a misrepresentation
Seller told truth that tenants were on land making it more valuable but didn’t mention they were leaving

Question 7

Tate v Williamson

Answer 7

Where relationship based on trust, silence can be a misrepresentation
Advised client to reduce price so he could buy it

Question 8

Lambert v co-operative insurance society

Answer 8

Jewellery insurance - husband convicted of stealing
Silence about conviction was a misrepresentation

Question 9

Spice girls ltd v Aprilia world service BV

Answer 9

Sponsorship - 1 spice girl leaving
By all attending, suggested none of them were leaving - misrepresentation

Question 10

Bisset v Wilkinson

Answer 10

Guessing how many sheep field could hold
Opinion believed to be accurate not a misrepresentation

Question 11

Edgington v fitzmaurice

Answer 11

Falsely stated use of investment
Statement of fact rather than future intention - didn’t have intention to make alterations - misrepresentation

Question 12

Made by party to the contract

Answer 12

Not liable for statements made by others unless they are their agent
E.g newspaper review cannot be misrepresentation

Question 13

Atwood v small

Answer 13

Surveyor to check statement
No misrepresentation- purchaser relied on survey report not seller

Question 14

Redgrave v Hurd

Answer 14

Entitled to rely on sellers statement

Question 15

museprime

Answer 15

what reasonable person would rely on is irrelevant

Question 16

misleading omissions

Answer 16

• 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

Question 17

innocent misrep

Answer 17

genuinely held on reasonable grounds
remedy - recision OR damages

Question 18

negligent misrep

Answer 18

no reasonable grounds to believe true
1. under common law tort ofg negligence
2. misrepresentation act 1967
3.

Question 19

negligence misrep under common law

Answer 19

hedley byrne v heller - claim fro misrep based on negligence allowed

Question 20

misrepresentation act 1967

Answer 20

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

Question 21

fraudulent misrep

Answer 21

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