Misrepresentation Flashcards
(15 cards)
What is misrepresentation?
a false statement of fact made before contract which induces C to enter contract and causes loss/damage
What are the 4 requirements for something to be established as an actionable misrepresentation?
statement:
- is a representation
- is false
- is one of fact
- induces other party into contract
What is a case example of statement of fact?
Esso v Mardon
What happened in Esso v Mardon?
esso rep advises M on estimated annual throughput of petrol station he later decides to lease, esso has substantial skill and expertise in this area so it is held to be a statement of fact
What is a case example of silence not being a statement of fact?
Keates v The Earl of Cadogan
What happened in Keates v The Earl of Cadogan?
D let house to C knowing C wanted it for immediate occupation, did not tell C house was uninhabitable, D was under no implied duty to disclose state of house
What are 2 requirements for misrepresentation making a contract void?
- would the statement influence a reasonable person
- misrepresentation must be one of reasons for entering contract
What are the 2 remedies for an actionable misrepresentation?
- rescission
- damages
How are the remedies available established?
by establishing ‘type’ of misrepresentation
What are the 3 types of misrepresentation under contract law?
fraudulent
negligent (under MA 1967)
innocent (under MA 1967)
What is meant by rescission?
contract set aside and parties restored to position they were in prior to entering contract
What is meant by damages as a remedy?
recovery for all direct loss caused by misrepresentation
When might a statement not be held to be one of fact?
if it is a half-truth or if circumstances change
What is a case example of circumstances changing?
With v O’Flanagan
What happened in With v O’Flanagan?
D sold medical practice and gave info regarding its income, true at time but then D fell ill and income fell away to nothing, sale took place 5 months after og statement
