Chapt 5 Cases misrep

Question 1

Nottingham patent brick and tile co v Butler 1886

Answer 1

Half truths may be held to be a misrepresentation

Silence does not normally amount to a misrepresentation but this is one of the exceptions

Solicitor told buyer he was unaware of any restrictive covenants. This WAS true because he hadn’t looked!!!

Question 2

With v O Flanagan 1936

Answer 2

Silence is not normally a misrepresentation but this is one of the exceptions

Subsequent falsity

Case says: Where there is a change of circumstances, there is an obligation to inform the other party

Income from GP surgery fell dramatically and he didn’t inform

Question 3

Derry v Peek 1889

Answer 3

Fraudulent misrepresentation

fraudulent misrepresentation occurrs where:

1. Knowingly false statement made
2. Made without belief in its truth
3. Reckless carelessness

Tram company didn’t lie but made a mistake

Question 4

Howard Marine v Ogden 1978

Answer 4

Negligent misrepresentation

The defendant used the Lloyd’s list to adopt a representation about the capacity of one of his ships prior to the formation of a charter party
The Lloyd’s list was wrong
Issue

Could damages be claimed under s 2(1) of the Misrepresentation Act 1967?
Decision
Yes
Reasoning
Damages as no reasonable grounds for believing true, had ownership documents.
Pol- without reasonable belief in truth/carelessness

Question 5

Royscott Trust ltd v rogerson 1991

Answer 5

Remedies avail in neg mis rep

Under s2(1) misrepresentation act 1967 there is a right to damages.

Case confirmed that negligent damages are assessed in the same way as fraudulent misrepresentation

Question 6

Redgrave v Hurd 1881

Misrep where innocent party is invited to check facts but doesn’t

Answer 6

Pol

No duty to verify a representation, even where it is easy and there is an invitation to do so

Contract can still be rescinded

Question 7

Mead v Babbington 2007

Answer 7

Mere puffs

Advertising claims that are not generally held to be representations