Misrep Flashcards
(13 cards)
What is misrepresentation?
A false statement of material fact, made by one party to another, which induces them to enter the contract.
⸻
Is silence misrepresentation?
No – Fletcher v Krell, but exceptions apply.
When can silence be misrepresentation? Hccf
• Half-truths – Dimmock v Hallett
• Change of circumstances – With v O’Flanagan
• Fiduciary duty – Tate v Williamson
• Conduct = statement – Spice Girls v Aprilia
Are opinions or future intentions misrepresentation?
Usually no – Bisset v Wilkinson, but future intention can be misrep if dishonest – Edgington v Fitzmaurice.
Who must make the false statement?
A party to the contract – third-party statements don’t count.
What counts as inducement?
The false statement must cause C to enter the contract.
• Attwood v Small – no inducement if C relies on own checks
• Redgrave v Hurd – no duty to verify
What is fraudulent misrepresentation?
Knowingly false or reckless disregard for truth –
Derry v Peek
→ Remedy: Rescission + damages
What is negligent misrepresentation (common law)?
Breach of duty of care in giving advice – Hedley Byrne v Heller
→ Remedy: Rescission + damages
What is negligent misrepresentation (statutory)?
Under s2(1) Misrep Act 1967 – D must prove reasonable belief
→ Howard Marine
What is innocent misrepresentation?
False but made honestly and reasonably
→ Remedy: Rescission or damages (court decides)
When is rescission barred?
• Impossible to restore – Clarke v Dickinson
• Affirmation – Long v Lloyd
• Delay – Leaf v International Galleries
• Third-party rights – Lewis v Averay
When does the Consumer Rights Act 2015 apply?
When C is a consumer (s2 CRA)
What key protections does CRA 2015 give?s12-14
s19 remedies
• s12: No change to key info without consent
• s13: Must match sample
• s14: Must match model
• s19: Remedies – reject, repair, replacement, price reduction
