Misrepresentation

Question 1

Definition

Answer 1

a false statement of material fact made by a party to the contract that induces the other party to enter the contract

Question 2

Requirements for an actionable misrepresentation

Answer 2

• Untrue/false statement - not silence - Fletcher v Krell
• Of material fact - not opinion - Bissett v Wilkinson
• Induced them into the contract - Attwood v Small

Question 3

Types of misrepresentation

Answer 3

• Fraudulent misrepresentation - Derry v Peek
• Negligent (i) statutory misrepresentation where the false statement made without reasonable grounds - s2(1) Misrepresentation Act, Howard Marine v Ogden, (ii) common law negligent misstatement Hedley Byrne v Heller
• Innocent misrepresentation where there were reasonable grounds for having made the statement - Sidall v Cambridgeshire

Question 4

Remedies

Answer 4

• For all kinds of misrepresentation damages may be awarded and/or rescission
• Rescission is subject to certain bars (Long v Lloyd)
• judge has the discretion to leave a contract in place but award damages in place of rescission, Section 2(2) Misrepresentation Act