misrepresentation Flashcards
(10 cards)
definition, may be able to claim the contract is void (2)
where a party to a contract had made untrue statements during negotiations, on which the other party had relied and was induced into the contract
the statement complained of must have been made before or at the time of the contract
1)
statement must have been false meaning that it is untrue
an opinion cannot be a misrep (blisset v wilkinson)
side rules
-saying something with no intention of doing it is a misrep (edginton v fitzmaurice)
- actions or conduct is a misrep (Spice girls v aprilla)
- silence is not misrep, d has no obligation to make a statement but anything said must be true (fletcher v krell)
- part truth, withholding info is a misrep (Dimmock v Hallet)
- change of circumstances, if statement is not corrected is a misrep (With v oflanagan)
SR last side rule
trust relationships (tate v Williamson)
- insurance contracts or relationships built on trust
any breach of this will be a misrep
- in contracts of upmost good faith you must tell the truth
2
misrep must have induced them into the contract (atwood v small)
3
type of misrep must be identified
fraudulent
is a false statement without any belief that it is true
only defence is if you did believe it was true (Derry v peak)
Negligent
when you believe statement is true but you had no reasonable grounds for having that belief
only defence is if you did have reasonable grounds S2(1) Misrep act 1967
innocent
when you believe the statement was true and you did have reasonable grounds to believe, you just made a mistake
only remedy is rescission, and damages at courts discretion S2(2) misrep act 1967
remedies
recession - equitable remedy, unscrambling of contract, pre contractual position, only grant if fair on both sides
damage, claim for all actual damage flowing directly from misrep
