Misrepresentation
- Created by: Launston
- Created on: 14-05-14 14:15
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- Misrepresentation
- A false statement of fact made to the claimaint, which induced them to enter into the contract
- Statement
- Silence is not a misrep - no duty to disclose information - Keates v earl of Cadogan - Caveat Emptor - exception is contracts uberrimae fidei
- Can be made by conduct - Spice Girls v Aprilia
- Fact - opinion not a misrep - Bisset v Wilkinson
- Exceptions - stated by expert (Esso Petroleum v Mardon) or contradicted by other facts known (Smith v Land and House)
- Fact - opinion not a misrep - Bisset v Wilkinson
- Can be made by conduct - Spice Girls v Aprilia
- Future Intention
- Not actionable if honestly held at time of making it - Edgington v Fitzmaurice
- Law
- Can be actionable - Pankhania
- Silence is not a misrep - no duty to disclose information - Keates v earl of Cadogan - Caveat Emptor - exception is contracts uberrimae fidei
- False
- Change of circumstance - With v O'Flanagan
- Half-Truths - Dimmock v Hallett
- Inducement
- Unable to show inducement
- Other reasons for contracting - JEB Fasteners
- Although, there is a modest standard of causation required - would be 'likely' to enter but can rely on other things as well
- Museprime v Adhill - whether solely or in conjunction with other inducements
- Although, there is a modest standard of causation required - would be 'likely' to enter but can rely on other things as well
- Own judgement
- Attwood v Small
- Unaware of misrepresentation
- Horsfall v Thomas
- Smith v Chadwick
- Horsfall v Thomas
- Other reasons for contracting - JEB Fasteners
- Unable to show inducement
- Damages
- Fraudulent
- Derry v Peek: made knowingly or without belief in its truth or recklessly as to whether it was true or false
- Damages for tort of deceit - put claimant into position before contract - Doyle v Olby
- No reduction for contributory negligence, liability cannot be excluded, all direct losses can be recovered even if they are foreseeable
- Damages for tort of deceit - put claimant into position before contract - Doyle v Olby
- Derry v Peek: made knowingly or without belief in its truth or recklessly as to whether it was true or false
- Innocent
- Believes statement is true
- Court has discretion to award damages in lieu of rescission
- William Sindall v Cambridge County Council
- Court has discretion to award damages in lieu of rescission
- Believes statement is true
- Negligent
- Misrepresentation Act
- Liable unless he proves he had reasonable grounds for believing representation was true and he did believe they were true
- Measure of damages same as for fraudulent misrep - 'fiction of fraud' - Royscott Trust v Rogerson
- Liable unless he proves he had reasonable grounds for believing representation was true and he did believe they were true
- Common law
- Hedley Byrne - other special relationships can trigger duty of care in making statements so extended common law tort of negligence
- Establish duty of care, breach and this causing loss which was foreseeable
- Measure of damages less than that for fraudulent - only foreseeable losses, contributory negligence can be relied on, liability can be excluded
- Establish duty of care, breach and this causing loss which was foreseeable
- Hedley Byrne - other special relationships can trigger duty of care in making statements so extended common law tort of negligence
- Misrepresentation Act
- Fraudulent
- Rescission
- Contract is voidable
- Rescission is not automatic - must elect and then be put back into position before contract
- Car and Universe Finance Co v Caldwell
- Rescission is not automatic - must elect and then be put back into position before contract
- Bars
- Affirmation - Long v Lloyd
- Lapse of time - Leaf
- Affirmation - Long v Lloyd
- Contract is voidable
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