Misrepresentation

Question 1

What is misrepresentation

Answer 1

a vitiating factor that makes a contract voidable.

Question 2

Define a false statement

Answer 2

A statement of material fact made by one party to induce another party into the contract

Question 3

When can a false statement be legitimate

Answer 3

When it is written, verbal or anything that influences the others decision

Question 4

What case can be used to give an example of false statement

Answer 4

Spice Girls LTD v Aprilla World Service

Question 5

Can silence amount to misrepresentation

Answer 5

No, it does not usually amount to misrepresentation

Question 6

When can silence amount to misrep

Answer 6

1. Initially true statement
2. Half truth
3. Relationship is based on trust
4. Made in the utmost good faith

Question 7

What must the statement be

Answer 7

Pure fact, rather than opinion or intent

Question 7

What must the statement do

Answer 7

Induce the other party to enter the contract & be a critical part of making the decision

Question 8

When will it not induce a party

Answer 8

1. When the person entering is not a part of the misrep
2. if the person relies on information they have obtained from elsewhere

Question 9

What does the extent of a persons knowledge depend upon

Answer 9

The accuracy of the statement which defines what type of misrep it is

Question 10

What are the 3 types of misrep

Answer 10

Fraudulent, Negligent and innocent.

Question 11

What is fraudulent misrep

Answer 11

Any statement which contains a deliberate untruth, which is made without belief in its truth, or recklessly.

Question 12

What is negligent misrep

Answer 12

Any representation is negligent unless the maker has reasonable grounds for believing its truth at the time and all subsequent moments up until the contract

Question 13

What is innocent representation

Answer 13

Any representation that is not fraudulent or negligent and is made honestly and reasonably.

Question 14

What are the rights and remedies

Answer 14

Any victim has the right to rescind the contract, meaning both parties return to their pre-contract positions. It is an equitable remedy.

Question 15

What can victims of fraud and negligent misrep claim

Answer 15

Damages on the tortious basis.

Question 16

When is recission available

Answer 16

It is discretionary and will not be awarded if the party has affirmed the contract or if it is impossible to return parties to original positions or if too much time has lapsed.

Question 17

What is the only remedy available to innocent misrepresentation

Answer 17

Recision, however the courts have the power to award damages.