Innocent Misrepresentation

Question 1

What is innocent misrepresentation?

Answer 1

a misrepresentation made without fault with a genuine belief as to its truth

Question 2

What is the remedy for innocent misrep?

Answer 2

rescission

Question 3

can damages be claimed in lieu of rescission? if so, what must be considered?

Answer 3

yes… under s2(2) of the misrepresentation act.
Must consider the -
1 nature of misrep
2 loss caused if a rescission was upheld
3 loss caused if damages are paid

Question 4

what are the 4 bars to rescission for innocent misrep?

L.R.A.T

Answer 4

1. lapse of time
2. restitution impossible
3. affirmation
4. third party rights

Question 5

Why is affirmation a bar to rescission?

I.M

Answer 5

because the contract was completed after finding the truth

Question 6

why are third party rights a bar to rescission?

I.M

Answer 6

rescinding a contract would interfere with any rights procured by third parties

Question 7

Why is lapse of time a bar to rescission?

Answer 7

clock begins from the date of contract.
The time frame must be reasonable.

Question 8

Leaf v ITL Galleries

Answer 8

case for lapse of time with rescission
the time frame was not considered reasonable, rescission was denied

Question 9

Crystal palace v Dowie

Answer 9

Case for third party rights barring rescission
reviving the employment would interfere with the new employment rights.