misrepresentation Flashcards

(52 cards)

1
Q

what is a vitiating factor?

A

something that makes a contract void or voidable

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2
Q

what is a representation?

A

a statement that was not incorporated into the contract and is not legally binding on the contract

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3
Q

who is the representor?

A

the person making the rep

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4
Q

who is the representee?

A

the person receiving the rep

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5
Q

what does void mean?

A

the contract is not legally valid so not binding

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6
Q

what does voidable mean?

A

the contract is valid but the innocent party can declare the contract invalid and not legally binding

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7
Q

what is the effect of misrep on a contract?

A

makes a valid contract voidable

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8
Q

what is the definition of misrepresentation?

A

a false statement of fact made by a party in the contract that includes the other party to enter the contract

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9
Q

what are the elements of misrep?

A

-d makes a false statement
-it is a statement of fact
-it is made by a party to a contract
-the statement induced the other party to enter into the contract

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10
Q

what can amount to a statement?

A

-verbal statements
-packaging
-conduct
-adverts
-written statement

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11
Q

what is the case that says what usually amounts to a statement?

A

Spice Girls v Aprillia World Service

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12
Q

what is the general rule regarding silence?

A

non-disclosure or silence cannot amount to a false statement

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13
Q

what is the case for silence not being a false statement?

A

Fletcher v Krell

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14
Q

what are the 4 exceptions to the general silence rule?

A

-contracts with a high degree of trust
-half truths
-change of circumstances
-consumer rights

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15
Q

what is the case for contracts with a high degree of trust?

A

Tate v Williamson

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16
Q

what is a half truth?

A

where the seller made a statement that was technically true, but failed to reveal the full situation

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17
Q

what is the case for half truths?

A

Dimmock v Hallet

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18
Q

what is the case for change of circumstances?

A

With v O’Flanaghan

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19
Q

what does consumer rights say?

A

if a business leaves out any important information that would be enable a consumer to make an informed decision, it can be misrep

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20
Q

what 3 things will not amount to a statement of fact?

A

-statements of opinion
-statements of future intention or conduct
-‘puff’ or mere sales talk

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21
Q

what is the case for statements of opinion not being facts?

A

Bisset v Wilkinson

22
Q

what is the exception to the rule about opinions?

A

if the seller has special knowledge or skills it is more than a mere opinion

23
Q

what is the case for the exception to opinion?

A

Smith v Land and House

24
Q

what is the case for statements of future intentions?

A

Edgington v Fitzmaurice

25
who counts as a false statement must be made by a party to the contract?
the seller, not a third party like a reviewer
26
what does a false statement must induce the other party to enter into the contract mean?
this means c must have relied upon the statement when deciding to enter into a contract
27
what are the cases for the statement inducing c?
-Horsefall v Thomas - worked -Attwood v Small - didn't work
28
what case shows that c did not have to take reasonable steps to check the info given by d?
Redgrave v Hurd
29
what does Redgrave v Hurd say?
even though a reasonable person may have double checked the information, all that mattered was that the buyer did actually rely on the statement
30
what are the 3 types of misrep?
-innocent misrep -negligent misrep -fraudulent misrep
31
which act defines the types of misrep?
s2(1) misrepresentation act 1967
32
what does the s2(1) misrepresentation act 1967 define innocent misrep as?
one that is false, but which the representor believed to be true and had reasonable grounds to believe the statement to be
33
what is the case for innocent misrep?
Leaf v International Galleries
34
what is negligent misrep?
where the representor believe their statement to be true but does not have reasonable grounds to believe it
35
what is the case for negligent misrep?
Howard Marine v Ogden
36
what is fraudulent misrep?
where the representor makes a statement that they know is not true
37
what is the case for negligent misrep?
Derry v Peak
38
what are the 2 main remedies for misrep?
-rescission -damages
39
what misreps do rescission apply to?
all misreps
40
what are the 4 bars for rescission?
-it is impossible to return the parties to their original decision -delay -the contract is affirmed (continued) -the innocent third party has gained rights over the property
41
what is the case for it being impossible to return the parties to the og position?
Vigers v Pike
42
what is the case for delay?
Leaf v International Galleries
43
what is the case for the contract being affirmed?
Long v Lloyd
44
what is the case for an innocent third party gaining the rights?
Lewis v Avery
45
which is the normal remedy for innocent misrep?
rescission but the courts can give damages if they think it better fits
46
what is the case for innocent misrep getting damages?
Govt of Zanzibar v British Aerospace
47
what is the case for types of damages being the same in negligent as fraudulent?
Royscot Trust Ltd v Rogerson
48
what case says damages can be a substitute for rescission in negligent misrep?
Salt v Strastone
49
what can c claim in fraudulent?
they can claim all expenses directly arising from the misrep even if they are not reasonably foreseeable
50
what case says about claiming all damages in fraudulent?
Doyle v Olby
51
which case shows that damages can be claimed for the money c could have made?
East v Maurer
52
the end