Misrepresentation Flashcards
What is a misrepresentation?
A false statement of fact which induces another to enter into a contract.
What are the three types of misrepresentation?
Fraudulent, innocent and negligent.
What are the essential requirements of misrepresentation?
- A false statement
- Of an existing or past fact
- Made by one party to another
- Which induces the other party to enter into a contract.
Do silence and non-disclosure usually amount to a misrepresentation?
No.
What happens where contracts require good faith and continuing statements are made?
There may be a misrepresentation if the statements were initially true but become false later.
Can a false statement be implied by conduct?
Yes.
What are not capable of being held to be misrepresentations?
Mere puffs, statements of genuine belief, statements as to the future and statements of law.
What happens if there was no reliance on the misrepresentation and give a case?
There can be no action as in Attwood.
How is fraudulent misrepresentation remediable?
By rescission and damages in the tort of deceit.
How is innocent misrepresentation remediable?
By rescission and damages in lieu of rescission.
How is negligent misrepresentation remediable?
By rescission and damages under section 2 (1) of the Misrepresentation Act 1967.
When can rescission be disallowed?
If the representee expressly or impliedly affirms the contract by continuing.
