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AQA A-level Law > Vitiating Factors - Misrepresentation P3 > Flashcards

Vitiating Factors - Misrepresentation P3 Flashcards

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1
Q

What is a vitating factor

A

Something which makes a contract void or voidable. If a contract is void = no legal standing

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2
Q

What does void mean

A

A contract that is declared to have no legal effect

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3
Q

What does voidable mean

A

Contracts can be made voidable in certain circumstances - if right to make contract void is not excercised, it remains valid

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4
Q

What are the two vitiating factors

A

Misrepresentation and Economic duress

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5
Q

What is the definition of misrepresentation

A

An untrue statement of fact made by another to contract another
It must have ainducing effect
It cannot be a statement of opinion

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6
Q

What is the case for a misrepresentation cannot be a statement of opinion

A

Dimmock V Hallet (1866)
Bisset v Wilkinson

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7
Q

What is the case for misrepresentation is an untrue statement of fact

A

Spice Girls Ltd V Aprilia (2000)

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8
Q

What doe ‘It must have an inducing affect’ mean

A

It must lead the other party into making the contract where the statement in important to the person making the contract
They must have relied on statement made rather than own judgement or info obtainned elsewhere

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9
Q

Which case showed that relience on a TP no longer meaning you are relying on the party who made the misrepresentation and therefore cannot be sued - main case for inducing effect

A

Attwood V small (1838)

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10
Q

What is the general rule for misrepresentation

A

Misepresentation cannot be given by silence

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11
Q

Which case showed that a failure to disclose facts is not ususally misrepresentation due to caveat emptor

A

Fletcher V Krell (1873)

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12
Q

What are the 4 exceptions to the general rule that misrepresentation cannot be given in silence

A

Deliberate concealment
Half truths
Change in circumstance
Uberrima Fides

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13
Q

Which case showed that silence as a mean for deliberate concealment of defects is misrepresentation

A

Schneider V Heath (1813)

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14
Q

Which case showed that where a statement has rendered false by change in circumstance there is a duty to disclose the change - failure = misrepresentation

A

With V O’Flanagan (1936)

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15
Q

Which case showed that non-disclosure, may be misrepresntation as the marker of statement has a duty to reveal the whole truth

A

Dimmock V Hallet (1866)

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16
Q

What did Lambert V Coorperative insurance show

A

The contract had been taken out in utmost good faith - Uberrima Fide

17
Q

Misrepresentation can be done..

A

Through conduct

18
Q

Which case showed misrepresentation can be done through conduct and shows an untrue statement of fact

A

Spice Girls Ltd V Aprilia (2000)

19
Q

What are the three types of misreprensation

A

Fraudulent
Neglient
Innocent

20
Q

What is Fraudulent misrepresentation

A

where the represent has intentionally lied about a fact or been reckless as to the truth - Derry V Peek (1889)

21
Q

What are the remedies for Fraudulent misrepresentation

A

Recission: Based on equity - a rewind remedy
Puts c back in the position they were before the misrep
Damages: Calulated as per the tort of deceit - generously
Includes all loses flowing from the misrep (Smith New court V Scrimgeour Vikers)
(CAN HAVE BOTH)

22
Q

What did Smith New Court Securities V Scrimgeour Vickers show

A

Damages under the tort of deceit can include all the losses flowing naturally from the original fraud

23
Q

what is Negligent Misrepresentation

A

The representor has been careless and in breach in whether a statement is true or not

24
Q

What are the two courses of action for negligent misrepresentation

A

Common law
Statute

25
Q

What is the common law route for negligent misrep

A

Under the Hedley Byrne V Hiller principles:
1) D must have a skill or knowledge
2) C must reasonably rely on statement
3) C was a known user
4) Was a knwon purpose for statement
5) D accepts responsibility for advice given

26
Q

Which case showed that negligent misrep requires a special relationship between c and d

A

Esso V Marden (1976)

27
Q

Which case shows that C must be a known user for negligent misrepresentation

A

Goodwill V BPAS (1996)

28
Q

What are the remedies for negligent misrepresentation (common law)

A

Recission: Rewind based in equity
Discretionary
Damage: Calculated per tor of negligence (Roysot Trust V Rogerson)
Avaliabe as of right
Must be reasonably forseeable (Wagon Mound)
CAN HAVE BOTH

29
Q

What is the statute route for negligent misrepresentation

A

S2(1) - Misrepresentation Act 1967: once mis rep is proved, burden of proof is passed to the D to show reasonable grounds for believing his statement was true

30
Q

What did the case of Royscot Trust V Rogerson (1991) show for common law negliegent misrepresentation

A

Damages under common law for negligent misrep are assesed under the tort of negligence (must be reasonably forseeable)

31
Q

What are the remedies for negligent misrep (Statute)

A

S2(1) Misrep Act 1967
Recission
Damages: Calculated per tort of deceit (Smith New Court)
Avaliable as of right
Includes all losses flowing from misrep (SAME AS FRAUDULENT) (Royscot Trust V Rogerson)
CAN HAVE BOTH

32
Q

What is innocent misrepresentation

A

Respresentor has a genuine belief in the truth of his statement e.g simply repeating advice given to them

33
Q

What are the remedies for innocent misrepresentation

A

Recission
OR
Damages: Not avaliable as of right
A discretionary remedy
S2(2) Misrep Act allows damages to be awarded instead of recission
Only reasonably forseeable damages can be recovered (Wagon Mound)
CANNOT HAVE BOTH

34
Q

What are the ‘Bars to Recission’

A

Situation where recission is not possible:
Affirmation (Long V Lloyd)
Delay (Leaf V Internal Galleries)
Impossibility (Vigers V Pike)
Third Party Rights (Lewis V Avery)

35
Q

What case is used for the statute route of negligent misrep - Burden of proof moves to D to prove reasonable reliance

A

Howard Marine V Ogden

AQA A-level Law (37 decks)

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