OCR A2 Law - The Law of Contract - Misrepresentation (7)

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  • Created by: Majid
  • Created on: 08-05-13 21:53

Misrepresentation (7)

2. Negligent Misrep (NM): This is available under the Common Law and Tort of Negligence. Damages are only awarded if the losses are a foreseeable consequence of the breach. Under statute law, the Misrep Act consequential losses are given. There is no need to prove a Hedley Byrne relationship or duty of care.

3. Statutory Misrep (SM): Allows for consequential damages to be given and the burden of proof shifts. The claimant only has to prove the Misrep. It is beneficial to use the statute, as there is less to prove. CASE: "Royscot v Rogerson".

4. Innocent Misrep (IM): Damages for IM aren't available under the Common Law, but it is available under statute. S2 (2) of the Misrep Act gives the court a discretion to award damages instead of rescission. You can't claim both.

AO2: This is at the courts discretion as there is still no right to this. Consequential damages are unlikely to be given.

Finally... It is also possible to be granted an indemnity (covering you for your losses) as a result of a misrep.

CASE: "Whittington v Seale-Hayne". In this case poultry breeders took a lease following an oral representation that the premises were in a sanitary condition. As this was far from the case the claimants weren't (at the time) entitled to consequential losses as they couldn't prove the fraud. HELD: They were awarded an indemnity representing what they'd spent in tems of rent and rates and other costs.

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