mirepresentations

Question 1

what is a representation?

Answer 1

the negotiating and discussions which take place before a contract is signed
representations are not legally binding

Question 2

what is a misrepresentation

Answer 2

when a representation made to you which induced you to singing the contract was incorrecy

Question 3

what is actionable misrepresentation

Answer 3

the right that you have to take the person who misreprented you to court and gain compensation and recind the contract

Question 4

what is fraudulent mis-representation

Answer 4

the person either knows that is not true or doesnt care if it true or not
their state of mind is RECKLESS

hard to prove as you need to give evdience that suggests beyound reaosnable doubt that they knew they were lying

Question 5

what are the remedies for fradulent mis-representation

Answer 5

the right to recession and claim for damages in the tort of deceit:
this means that they can claim for all consequences of the fraud wether that be forseeable or not
ex loss of profit
(called aggrevated damages)

Question 6

what act introduced 2 new types of misrepresentation?

Answer 6

the misrepresentations act 1967

Question 7

what is negligent misrepresentation

Answer 7

there is not reasonable grounds to believe what the person said was true
not lying just being careless

usually people trying to sell things in a shop without knowing everything about the product

easier to prove than fraudulent as the burden of proof falls on the defendant rather than the claimant and it is rather hard to prove that you were not lying

Question 8

what are the remedies for negligent misrepresentation?

Answer 8

• recission and damages for the fort of negligence:

thismeans that. damages must. be reasonably forseeable

Question 9

wolly innocent

Answer 9

• the representation given by the defendant was not true however they beleived it to be at the time

Question 10

what are the 3 requirements to claim actionable misrepresentation?

Answer 10

1) had to be untrue
2) had to be a fact not an opinion
3) had to induce you to sign the contract

Question 11

specialist knowledge

Answer 11

• if someone gives you specialist knowledge that is seen as fact not opinion in the eyes of the law
• chess v williams:
• willaims brough a car believing it was a 1938 year modeal
• he then sold to to chess ( a car specialist) saying it was an 1938 year model
• chess brought it and then found out it was much older
• chess tried to sue for actionable misrepresentation however as he holds specialist knowledge and wilkinson doesnt he accepted the car and should have known better

Question 12

words or conduct

Answer 12

• if somones words or conduct misrepresent you to singing a contract. they. are taken as fact not opinion and you can be sued for actionable misrepresentation

spice girls v aprilla world services:
- aprilla were coming out with a new range of motorbikes and they hired the spice girls to head the campaign
- the paid for them to go to an exotic location to shoot
- weeks before the launch gerry halliwell announced she left the band making the aprilla adverts wrong
- the court rulled that the spice girls conduct to enter a contract. when they. knew one of them was leaving was a misrepresentation
- had to pay damages to aprilla

Question 13

if something hasn’t happened yet

Answer 13

• if something hasnt happened yet then the representations made by the party are opinion not fact

bisset v wilkinson
- bisset wanted to by land off of wilkinson which he had inherited from a relative in new zeland where he had never been
- bisset askedif the land would be suitable for farming which wilkson said yes as it had never been used for farming
- when bisset got the land it was all marsh and unfarmable. he tried to claim for misrepresentations but becuase it hadnt been used for farming before so wilkinsons representation was simply just an opinion

Question 14

remedies for wholly innocent

Answer 14

recission but no damages

Question 15

statements of future intention?

Answer 15

if representations are made of future intention are made but dont happen this is not actionable
it is only actionable if it was never going to happen

Question 16

statements of false future intention case?

Answer 16

Eddington v fitzmaurice

• fizmaurice was a businessman who tried to get investments to ‘make building alternations and improve the business’
• however this was never going to happen because he knew the money would instead be used to help the companys debts
• this is a misrepretnation as the building work was never going to take place

Question 17

disclosure of changing situation

Answer 17

if something changes which will alter the outcome of your contract you must disclose this or it is a misrepresentation

Question 18

disclosure of changing situation case

Answer 18

with v O’flanigan

• O’Flanigan owned a GP practice he wanted to sell and he disclosed that his turnouver has high
• before the contract of purchase occured he well ill stopped seeingclients and that turnover fell to almost 0
• he didnt disclose this change in turnover and therfore

Question 19

how is it determined what type of misrepresentation it is

Answer 19

depends on the bstateof mine of the person who makes the representation at the time it is made

Question 20

what type of tort is fraudulent misrepresentation?

Answer 20

tort of deceit

Question 21

what type of tort is negligent misrepresentation

Answer 21

tort of negligence

Question 22

what is recission:

Answer 22

termination of contract restoring both parties back to their pre- contract position

Question 23

if material facts change chanign the representation is this a misrepresntation

Answer 23

yes failure to disclose a change of representaion is misrepresntation
(Such as in spice girls v aprilla wrold servies)

Question 24

atwood v small

Answer 24

if you dont follow the representation given to you it doesnt count as actionable