contract law -misreps & discharges
- Created by: launa07
- Created on: 04-05-15 17:36
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- CONTRACT LAW
- 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 .
- statement of opinion
- 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.
- a void contract-is one which has never existed
- 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
- if a warranty of the contract is breached the innocent does not have the right to repudiate but can claim damages
- 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
- common law position on losses incurred under a frustrated contract was that the loss lay where it fell.-these have been modified by statute
- the contract depends on the personal service of someone their death,illness or absence could frustrate it
- situations which may frustrate a contract
- performance - when both parties do what they promised to do .
- misrepresen-tations
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