OCR A2 Law - The Law of Contract - Misrepresentation (4)

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  • Created by: Majid
  • Created on: 08-05-13 21:01

Misrepresentation (4)

3. Statutory Misrep (SM): This has been defined in S2 (1) of the Misrep Act 1967; "If a party is a victim of a misrep and would be compensated if it was fraudulent, this Act states that even if there is insufficient proof of fraud, the statement maker is liable - unless they (statement maker) can prove otherwise".

The burden of proof shifts to the defendant and they just have to prove the Misrep. There is no need to prove the Fraud or Hedley Byrne relationship.

It was used successfully in CASE: "Howard Marine v Ogden". In this case a marine manager made negligent statements regarding weight that could be carried on a barge. HELD: The contractors opted to use the Act and were successful in their claim. (EASIEST TO PROVE!!!)

4. Innocent Misrep (IM): This is a statement made without blame or fault.

CASE: "Leaf v International Galleries". In this case a statement was made regarding the genuineness of a painting who thought it was real, relying on the other statement (what the misrep was) HELD: ... this amounted to an IM.

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