Misrepresentation

Question 1

What are the three types of misrepresentation?

Answer 1

Innocent
Fraudulent
Negligent

Question 2

What case demonstrates an innocent misrepresentation?

Answer 2

Redgrave v Hurd, innocent misrepresentation can give a right to recession on the basis that no man ought to take advantage of his own false statement

Question 3

What case shows a fraudulent misrepresentation?

Answer 3

Edgington v Fitzmaurice, it did not matter that the C entered into the contract in part due to his own mistake, existence of misrepresentation is enough

Question 4

What case shows that a statement of opinion cannot be misrepresentation

Answer 4

Bisset v Wilkinson, both parties knew the land hadn’t been used in the desired way, therefore the statement had no factual basis

Question 5

Does it make a difference if a statement was once true but no longer is?

Answer 5

Yes, With v O’Flanagan, if a statement has been made that is true at the time but during the course of negotiations becomes untrue, then the person who knows that it is untrue is under an obligation to disclose the change of circumstances

Question 6

What did the case of Hayward v Zurich Insurance show?

Answer 6

Not necessary to show that the representee believed the misrepresentation, although their state of mind may be relevant in deciding inducement