Vitiating Factors: Misrepresentation Economic Duress 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
