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Contract Law > Misrepresentation > Flashcards

Misrepresentation Flashcards

1
Q

Dimmock v Hallett

A

Mere puff will not found an action in misrepresentation
Land described as ‘fertile and improvable’ - mere puff
Half-truths amount to misrepresentation

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2
Q

McInerny v Lloyd’s Bank

A

Statement has to be unambiguous - representor not liable for claimant placing unreasonable construction upon representation

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3
Q

Avon Insurance v Swire Fraser

A

A statement will not be false if it is ‘substantially correct’

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4
Q

Kleinwort Benson v Malaysia Mining Corp

A

Must be a statement of fact - asserts a given state of affairs (e.g. creditworthiness of parent company at the time of writing the comfort letter)

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5
Q

Pankhania v Hackney LBC

A

Statement of law is statement of fact

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6
Q

Gordon v Selico

A

Attempts at concealment capable of being misrepresentation

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7
Q

Bisset v Wilkinson

A

Layman’s opinion is not fact

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8
Q

Smith v Land & House Property Corporation

A

Opinion with greater knowledge may be fact - ‘he impliedly states he knows facts which justify his opinion’

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9
Q

Esso v Marden

A

Expert opinion may be fact

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10
Q

Beattie v Ebury

A

Future intention is not fact

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11
Q

Wales v Wadham

A

Statement of future intention is not fact - under no obligation to inform other party of later change of mind

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12
Q

Edgington v Fitzmaurice

A

Statement of false intention is fact

Misrepresentation need not be the only inducement into the contract

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13
Q

Keats v Earl of Cadogan

A

Silence is not fact

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14
Q

With v O’Flanagan

A

Silence amounting to a continuing representation that becomes false by the time of contracting is a statement of fact

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15
Q

Commercial Banking Co of Sydney v RH Brown

A

Statement must be addressed to claimant or made clear that it will be received by the claimant

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16
Q

Pan Atlantic v Pine Top Insurance

A

Does statement relate to issue that would materially influence the reasonable man entering into this type of contract?

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17
Q

Smith v Chadwick

A

If statement is material, inducement is presumed

No inducement if claimant did not rely on misrepresentation

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18
Q

Musprime v Adhill Properties

A

Claimant or defendant can prove claimant was/was not subjectively induced - although a reasonable person would/would not have been induced into the contract, the particular claimant was/was not

19
Q

JEB Fasteners v Mark Bloom

A

Misrepresentation must have played a real and substantial part in inducing the contract

20
Q

Horsfall v Thomas

A

No inducement where claimant was not aware of misrepresentation

21
Q

Redgrave v Hurd

A

No general duty to check a statement’s truth

22
Q

Smith v Eric Bush

A

If the party is commercial, the courts will deem it more reasonable to check the truth of the statement

23
Q

Attwood v Small

A

No inducement if claimant relied on their own investigation

24
Q

S Pearson v Dublin Corporation

A

If misrepresentation is fraudulent, any investigation carried out by misrepresentee will be discounted by he courts (OBITER)

25
Q

Derry v Peek

A

Fraudulent misrepresentation is:

1) Knowing it’s untrue
2) Without belief in its truth
3) Reckless as to its truth

26
Q

Thomas Witter v TBP Industries

A

Recklessness is a flagrant disregard for the truth - defendant has shut his eyes to the facts or purposely abstained from inquiring into them

27
Q

Doyle v Olby Ironmongers

A

All losses flowing from entire transaction are recoverable under fraudulent misrepresentation as long as not too remote

28
Q

Smith New Court v Scrimgeour Vickers

A

Confirms Doyle - must mitigate, damages reduced by any benefit accruing to the claimant as a result of the misrepresentation

29
Q

East v Maurer

A

Can claim for tortious loss of profit in fraudulent misrepresentation - what would the claimant have made had they entered into a similar contract elsewhere?

30
Q

Clef Aquitaine v Laporte

A

If claimant can prove that a definite contract that was going to happen was lost because of the misrepresentation, prospective loss for that specific profit can be claimed

31
Q

Standard Chartered Banking v Pakistan National Shipping

A

Defence of contributory negligence does not apply

32
Q

Howard Marine v Ogden

A

Fiction of fraud - if found liable for negligent misrepresentation, the defendant is treated as if liable for fraudulent misrepresentation

33
Q

William Sindall v Cambridgeshire CC

A

Courts unlikely to grant rescission where misrepresentation is trivial and rescission would have serious and disproportionate consequences for misrepresentor

34
Q

Car & Universal Finance v Caldwell

A

Claimant must intimate to the world at large that he intends to rescind the contract

35
Q

Phillips v Brooks

A

Third party rights - cannot rescind contract if part of subject matter has been sold on

36
Q

Long v Lloyd

A

Affirmation - cannot rescind if the claimant has acted as though they intend to continue with the contract

37
Q

Clarke v Dickson

A

Impossibility - cannot rescind if the subject matter has changed irrevocably

38
Q

Leaf v International Galleries

A

Lapse of time - delay will defeat rescission

39
Q

Whittington v Seale-Hayne

A

Indemnity may be awarded to cover expenses for legal obligations assumed as a direct result of contract
Most likely in cases of innocent misrepresentation where no damages are available

40
Q

Hedley Byrne v Heller

A

Negligent misstatement - reliance, special relationship, assumption of responsibility

41
Q

Wagon Mound

A

Negligent misstatement damages - all losses reasonably foreseeable

42
Q

Cremdean v Nash

A

General rule - cannot exclude liability for misrepresentation

43
Q

Lewis v Avery

A

Rebuttable presumption that in face-to-face dealings the seller intends to contract with the person in front of them - and false statements about identity are actionable under misrepresentation

44
Q

Shogun Finance v Hudson

A

Rebuttable presumption that in distance selling the seller contracts with the person represented, so false statements about identity are actionable under mistake and the contract is void ab initio

Contract Law (8 decks)

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