Misrepresentation Flashcards
What are the steps for misrepresentations?
Define
False statement
Material fact
Made by a party (agents)
Induced them to enter contract
Misrepresentations in consumer context
Types: Innocent, Negligent, Fraudulent
Remedies for each type
What is a misrepresentation?
A statement that influences a decision on whether or not to make a contract and it being false - this makes a contract voidable
What is a false statement?
A statement that is not true or accurate
Is silence generally a misrepresentation? And by what principle is this the case?
No (but there are exceptions)
Caveat emptor - let the buyer beware
Which case shows silence generally isn’t a false statement?
Fletcher v Krell
Can statements become misrepresentations if they become untrue?
Yes, even if it was true at the time
Which case shows a statement becoming misrepresentation despite being true at the time?
With v O’Flanagan
When can silence be a misrepresentation?
When a statement becomes untrue the party needs to correct the information - sometimes they will need to disclose the whole truth.
AND/OR
Where the relationship between the parties is based on trust
Which case shows silence being a misrepresentation due to a statement becoming untrue?
Dimmock v Hallett
Which case shows silence being a misrepresentation due to the relationship being based on trust?
Tate v Williamson
What is required for a contract of the utmost good faith?
All material facts must be disclosed (e.g. insurance contracts)
Which case shows a contract of the utmost good faith?
Lambert v Co-operative Insurance Society Ltd
What mode do statements have to be in?
Written, verbal or anything that would influence the other’s decision
What is a material fact?
A fact (not opinion) which would have led a reasonable person to make the contract and did influence the mind of the person making the contract
Which case shows a false statement isn’t a misrepresentation if it is not a material fact?
Bisset v Wilkinson
Edgington v Fitzmaurice
Is a person liable for statements made by others?
No, unless they are their agent (someone who stands in their shoes)
What is meant by the misrepresentation must have induced the party into entering the contract?
The statement must lead the party into making the contract and be a critical part of making the decision
Which case shows the misrepresentation must induce them into making the contract?
Attwood v Small
Does it matter if the victim could’ve discovered the truth by taking reasonable steps?
No
Does it matter if it was unreasonable to rely on the untrue statement?
No
Which case shows that it doesn’t matter if the victim could’ve discovered the truth?
Redgrave v Hurd
Is what the reasonable person would’ve (not) done relevant?
No
Which case shows it is irrelevant what the reasonable person would’ve done?
Museprime Properties Ltd v Adhill Properties Ltd
What is different about misrepresentations in consumer context?
All consumer information must be displayed clearly, otherwise it will be considered misleading if they omit material information, hide or provide information in an unclear manner, or fails to identify the commercial intent (can sue for silence here)
