Misrepresentation Flashcards
What happens if a party is encouraged to enter a contract because of factual statements which later turn out to be untrue.
Then the misrepresentation may provide a remedy to the injured party
What is the case for an example of an ‘untrue statement’?
Inntrepreneur Estates v Holland
Inntrepreneur Estates v Holland - What are the three things a misrepresentation cannot be? 1
A mere opinion - Bissett v Wilkinson
What is a misrepresentation?
A false statement of material fact
Inntrepreneur Estates v Holland - What are the three things a misrepresentation cannot be? 2
An expression of future intent - Edgington v Fitzmaurice
Inntrepreneur Estates v Holland - What are the three things a misrepresentation cannot be? 3
A mere trade puff - Carlill v Carbolic Smoke Ball Co.
When can a misrepresentation be made?
At or before the time of the agreement.
Can a misrepresentation arise from conduct rather than from a verbal or written statement?
Yes - Spice Girls v Aprilia World Service
Can misrepresentation arise from mere silence?
No - Hamilton v Allied Domecq
Can a statement made after the formation be actionable?
No - Roscorla v Thomas
What are the three types of misrepresentation? (1)
Fraudulent misrepresentation - statement made knowingly or deliberately, or being reckless as to whether it is true or not - Derry v Peek
What are the three types of misrepresentation? (2)
Negligent misrepresentation - can be actioned at common law where the loss is financial. - Hedley Byrne v Heller and Partners
When will liability arise for negligent misrepresentation?
When there is a special relationship and the party making the statement owes a duty of care to the other party.
What does section 2(1) of the Misrepresentation Act 1967 allow an action for?
Where a misrepresentation is made and a loss occurs as a result of relying on the misrepresentation.
When does section 2(1) not work?
When they can show they had reasonable grounds to believe the statement.
