A statement of fact - Part 2 (Misrepresentation - Vitiating factors)-FS

Question 1

When can a statement of opinion be treated as a statement of fact in misrepresentation?

Answer 1

When the person giving the opinion is in a stronger position to know the truth (e.g., they own the property or have relevant expertise).

Question 2

Why might a seller’s opinion about their own property be treated as fact?

Answer 2

Because the seller is presumed to have special knowledge about the property and their statements carry implied factual weight.

Question 3

What happens if a seller makes an opinion statement knowing it contradicts their actual experience?

Answer 3

The opinion may be reclassified as a factual misrepresentation if the seller knows, or should know, it is false.

Question 4

What legal principle is illustrated by a seller who repeatedly fails at something but still represents its success?

Answer 4

A knowingly false opinion—especially based on past experience—can amount to an actionable misrepresentation.

Question 5

How does expertise affect the classification of a statement as opinion or fact?

Answer 5

If the person making the statement holds themselves out as an expert, their statement may be treated as a statement of fact.

Question 6

In what context might a business estimate be treated as a misrepresentation of fact?

Answer 6

When an expert (e.g., a commercial entity) makes a specific projection based on their presumed skill and access to data, it may be actionable if false.

Question 7

What duty arises from holding oneself out as having expert knowledge?

Answer 7

The duty to take reasonable care in making representations; failure to do so may result in liability for misrepresentation.

Question 8

Can statements of commercial expectation made by professionals be relied on in misrepresentation claims?

Answer 8

Yes, particularly if the professional has relevant expertise and the representation proves significantly inaccurate.