• 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)
      • Future Intention
        • Not actionable if honestly held at time of making it - Edgington v Fitzmaurice
      • Law
        • Can be actionable - Pankhania
    • 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
        • Own judgement
          • Attwood v Small
        • Unaware of misrepresentation
          • Horsfall v Thomas
            • Smith v Chadwick
    • 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
      • Innocent
        • Believes statement is true
          • Court has discretion to award damages in lieu of rescission
            • William Sindall v Cambridge County Council
      • 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
        • 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
    • 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
      • Bars
        • Affirmation - Long v Lloyd
          • Lapse of time - Leaf


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