vitigating factors

Question 1

vitigating factors meaning

Answer 1

make contract voidable

Question 2

voidable meaning

Answer 2

The contract came to existence

Question 3

rescission meaning

Answer 3

cancellation, repeal of the law/ order/ agreement, affirmation so to continue with it (like repudiate)

Question 4

misrepresentation meaning

Answer 4

A false statement of material fact which induced the innocent party to enter the contract and it was made by a party to the contract

Question 5

false statement 3 cases and KLP

Answer 5

1. Spice girls v Aprilia (anything that would influence a decision, misrepresentation can be through conduct)
2. Fletcher v Krell (silence cannot be misrepresentation)
3. Dimmock v Hallet (however silence can be a misrepresentation if a half-truth)

Question 6

of material fact (NOT AN OPINION) 2 cases with KLP

Answer 6

1. Bisset v Wilkinson (statement was of opinion)
2. Edington v Fitzmaurice, tells us that a statement of future intent (usually not taken to be a material fact) can be a misrepresentation if there was never any intention of carrying it out

Question 7

made by a party to contract (no cases)

Answer 7

on their agent, so a third-party assuming contracting party knew of untrue statement

Question 8

that induces the other party to enter the contract (3 case and KLP)

Answer 8

1. Museprime Properties v Adhill, auctions of a reasonable person irrelevant (as the claimant can claim deposit and return expenses through conveyancing)
2. Redgrave v Hurd, induced to enter contract (he didn’t check the account)
3. Attwood v Small- used their own surveyors

Question 9

types of misrepresentation

Answer 9

innocent, negligent, fraudulent

Question 10

innocent misrepresentation + remedies

Answer 10

• party making the statement must prove that when they made the statement they believe the statement to be true and has REASONABLE GROUNDS for this belief
• remedy- recision, under S2(2) Misrepresentation Act, Salt v Stratstone Specialist)

Question 11

negligent misrepresentation + remedies

Answer 11

• statement made with no reasonable grounds for belief
• Hedly Byrne v Heller
• remedy- rescission of contract and possibly tort (Hedley Byrne V Heller)

Question 12

fraudulent misrepresentation + remedies (1 case and KLP)

Answer 12

• Derry v Peek, The statement was made (1) knowing it to be false, (2) without belief in its truth, (3) and being recklessly careless as to whether it is true or false (so they don’t care)
• remedy, can claim under the tort of deceit, recision, claim loss of profit

Question 13

Bars to rescission:

Answer 13

1. innocent party affirms contract
2. time lapse, Leaf v International Galleries, so the ‘delay defeats equity’ but now the lapse of time is no longer automatic bar to rescission
3. impossible to return to pre-contractual position, so for example if it has been sold again to an innocent third-party (Salt v Stratstone)