Misrepresentation Flashcards
Misrepresentation Definition
A false statement of material fact made by a party to the contract that induces the other party to enter to contract
What are 3 types of misrepresentation?
Fraudulent
Negligent
Innocent
Key Elements of Misrepresentation
A false statement
A false statement of material fact
Made by a party to the contract
Inducement of party into contract
What is a false statement?
Untrue statement
Knowledge of defendant will determine the type of misrepresentation
What is the legal principle in Fletcher v Krell (1873)?
Silence is not misrepresentation and you don’t need to disclose any information that you are not asked about
What is the legal principle in Tate v Williamson (1866)?
Silence can be misrepresentation when the party’s relationship is based on trust
What is subsequent falsity?
Even if a statement is true when made, it can become misrepresentation if it’s made false before the contract is made
What is the legal principle in With v O’Flanagan?
You must change your original statement if it becomes false
What is a half-truth?
What isn’t said is a non-disclosure and may be representation as the statement maker has a duty to reveal the whole truth
What is the legal principle in Dimmock v Hallett (1866)?
Half-truths can amount to misrepresentation
What is good faith (uberrimae fidei)?
All material facts must be disclosed whether asked about or not
Typical of insurance contracts
What is the legal principle in Spice Girls v Aprilia World Service (2002)?
Half-truths can be misrepresentation
What is the legal principle in Lambert v Co-Op Insurance Society (1975)?
Silence is misrepresentation so they refuse to pay her claim
Rule surrounding Material Fact
An opinion won’t create an actionable misrepresentation
What is the legal principle in Bisset v Wilkinson (1927)?
If you genuinely believe your opinion is accurate it does not amount to misrepresentation
What is the legal principle in Smith v Land and House Properties Corp (1884)?
Not a mere opinion so the statement was untrue and therefore misrepresentation is present
What is the legal principle in Edgington v Fitzmaurice (1885)?
Seen as a fact not a future intention so it was misrepresentation
What is inducement?
A statement that leads the other party into making the contract; doesn’t need to be the main reason, it could be a contributing factor
What is the legal principle in Attwood v Small (1838)?
The purchaser relied on the survey report not the seller’s statement, so even though the statement was untrue it wasn’t misrepresentation
What is the legal principle in Redgrave v Hurd (1881)?
They were entitled to rely on the seller’s untrue statement so this held to be misrepresentation
What is the legal principle in Museprime Properties v Adhill Properties (1990)?
The purchaser relied on the statements so there can be misrepresentation
What two things are in s.12 of the Consumer Rights Act (2015)?
Traders have to provide certain information before the contract becomes binding
A change to information is not effective unless EXPRESSLY agreed between parties
What is considered as misleading under the CP(A)R (2014)?
Hides or provides information in an unclear, ambiguous manner
Omits material information that the consumer needs to make the decision
Fails to identify the commercial intent of the commercial practice
What is the definition of fraudulent misrepresentation?
A statement made that is known to be untrue or is reckless as to whether or not it’s true
