Misrepresantation

Question 1

Intro

Answer 1

May be able to claim the contract is void due to misrepresentation

Question 2

Definition

Answer 2

-Misrep is when a party to a contract has made an untrue statement during negotiations.
-on which the other party has relied e was induced by it to enter the contract
-statement complained must have been made before or at the time of the contract

Question 3

Step 1

Answer 3

Statement must be false meaning it is not true or accurate

Question 4

Opinion

Answer 4

Statement will NOT be a misrep if it’s simply an opinion (Bisset v Wilkinson)

Question 5

Intention

Answer 5

Statement IS A MISREP if p making it could not based on evidence have had that opinion or intention ( EDGINGTON V FITZMAURICE)

Question 6

Actions or conduct

Answer 6

the statement IS A MISREP by actions or conduct ( SPICE GIRLS V APRILLA)

Question 7

Silence

Answer 7

CANNOT be a misrep no obligation for person to make any statement but anything said must be true = (FLETCHER V KRELL)

Question 8

Silence cannot be a misrep UNLESS

Answer 8

Part truth
Change of circumstances
Relationship based on trust
Utmost good faith

Question 9

Part truth

Answer 9

Person only reveals part truth nd deliberately withholds info
(DIMMOCK V HALLET)

Question 10

Change of circumstances

Answer 10

If statement was true then circumstances changed nd statment became untrue as a result but did not correct
( with v o Flanagan)

Question 11

Rele Based on trust

Answer 11

-rele built on trust any breach on that trust will be misrep
TATE V WILLIAMSON

Question 12

Utmost good faith

Answer 12

All material disclosed must be true
LAMBERT V CO OPERATIVE INSURANCE

Question 13

Step 2

Answer 13

Has the misrep induced the other party into the contract
ATTWOOD V SMALL

Question 14

Step 3

Answer 14

Fraudulent
Negligent
Innocent

Question 15

Fraudulent

Answer 15

A false statement made without any belief that it is true

-only defence if u believe statement u made is true (Derry v peak)

Question 16

Negligent

Answer 16

Believe statement was true but had no reasonable grounds to believe that

Mis rep act 1967 = only defence is person making had reasonable grounds to believe statement was true

Question 17

Innocent

Answer 17

Believe statement was true and had reasonable grounds to believe the statement was true. You just made a mistake

Question 18

Step 4

Answer 18

Remedies or rescission

Question 19

Rescission

Answer 19

Means contract is “unscrambled” so that both parties are returned to their pre-contract position
-only grant if it’s fair and possible in all the circumstances to both sides
- each recovers anything that he has made over to others

Question 20

Damages

Answer 20

All actual damages or loss flowing directly from the Mis rep is claimable