contract law -misreps & discharges

  • Created by: launa07
  • Created on: 04-05-15 17:36
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    • misrepresen-tations
      • a void contract-is one which has never existed
        • a voidable contact- is one which does exist and will continue to do so until both parties pull out
      • a misrepresent-ation is a false statement of fact.
        • pankhania v hackney london council 2002
      • non disclosure - silence does not normally amount to misrep,it is an important fact of english law for neither party to have to disclose facts that may effect the contract
      • the following matters are not normally misrepresentation
        • statement of opinion
          • bissett v wilkinson 1927
        • extravagant advertise ments and sale talk will not be misrepresentations unless they claim to be based on facts and figures
        • statements of intention -  don't normally count unless you state the intention of doing something that you intend to do .
      • fraudulent misrep - a knowingly false statement is made
        • derry v peek 1889
        • negligent misrep - under s2(1) MA1967 a person must prove they believed the statement was true at the time the contract was made
          • howard & dredging co ltd & sons ltd 1978
          • with fraudulent misreps both damages and rescission are available to the victims of nedligent misreps
      • innocent misreps - an innocent misrep is one who is neither fraudulent or negligent .
        • only rescission was available as a remedy for an innocent misrep however under s2(2)MA 1967 the courts awarded damages.
    • discharge of contracts
      • performance - when both parties do what they promised to do .
        • exceptions to the general rule - (1) acceptance of partial performance (2) substantial performance (3) prevents performance
        • cutter v powell 1795
        • time of performance - time is of the essence, when it is not of the essence it will be seen as a warranty
      • breach of a contract occurs when one party fails to discharge the contract as agreed
        • if a warranty of the contract is breached the innocent does not have the right to repudiate but can claim damages
          • bettini v gye 1876
        • if a condition of the contract is breached the innocent party can repudiate the contract and claim damages
          • poussard v spiers and pond 1876
      • agreement can end the contract but agreement its self can be a contract so must fulfill the requirement for a valid contract
      • finding consideration if neither part has performed there obligations the parties may end their contract by promising to not enforce the contract -mutual promises provide consideration
      • frustrating events - unforeseen circumstance which are the fault of neither party
        • situations which may frustrate a contract
          • the contract depends on the personal service of someone their death,illness or absence could frustrate it
            • condor v the Barron knights ltd 1966
          • an essential part to the contract is destroyed
          • an event sole reason for the contract does not take place
            • krell v henry 1903
          • government interference
          • effects of frustration - to bring the contract to an automatic end
            • common law position on losses incurred under a frustrated contract was that the loss lay where it fell.-these have been modified by statute
              • appleby v myres 1867


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