Vitiating Factors - Misrepresentation Flashcards
What is meant by misrepresentation?
‘A false statement of material fact made by one party to another during negotiations, which induces the other party to enter into the contract’
What constitutes an untrue statement?
The statement made must be false — Dimmock v Hallet
Non disclosure of facts is also counted as an untrue statement, therefor can also amount to misrepresentation — V O’Flanagan
What is meant by material fact?
The misrepresentation must be fact and not just an opinion or advertising puff— Bisset v Wilkinson
Spice Girls v Aprila world service
What is meant by inducement?
The misrepresentation must induce the other arty to enter into the contract (purchaser must show they relied upon the statement)
Information relied upon — Atwood v Small
When must the misrepresentation have taken place?
Made before the contract is formed — Roscorla v Thomas
Does silence amount to misrepresentation?
General rule — no
Hands v Simpson Faucett
Fletcher v Krell
When can silence amount to misrepresentation?
Where there is a positive duty to disclose the information
Sybron Cooperation v Rockhem
