Misrepresentation Flashcards
Definition of misrepresentation
Misrepresentation is a false statement of a material fact made by a contractor which induces the other party to enter the contract
A01- Misrepresentation
False statement:
- Silence cannot amount to misrepresentation (fletcher v Krell)
-A half-truth cannot be a misrepresentation (Dimmock v Hellet)
-Where both parties trust each other silence may amount to misrepresentation
Material Fact:
- Must be a statement of facts, not opinion (Bisset v Wilkinson
Trade by a party to the contractor:
- Agreement must be made by the party or an agent which is acting on their behalf)
Inducing the contract:
-The other party relied on the statement rather than on their own judgement (Attwood v small)
Consumer protection Regulations 2014:
- it is considered misleading if a trader
> omits information that the average consumer would need to make an informed transactional decision
>Hides or provides material information in an unclear way
Omissions in consumer contexts:
-traders may deliberately leave out important information which the law protects from by banning deceptive omissions
Consumer rights Act 2015:
- S12, the trader must provide certain info before the contract becomes binding
-S13, When a sample is given the actual product must be as described by the sample
Innocent misrepresentation:
- A false statement made honestly (Misrepresentation Act 1967)
- Awarded either:
>rescission
>damages
Negligent Misrepresentation:
- A false statement made by someone who had no grounds to believe it to be true
- Damages available under both common law tort and the 1967 misrepresentation act (Howard v Ogden)
-S2(1), where misrepresentation causes a loss the burden of proof is on the person making the statement on whether they had good grounds to believe the statement.
Fraudulent misrepresentation:
- A statement made by a person who knows it to be untrue but still provides fraudulent information (Derry v Peek)
- Remedies are damages or rescission
