Misrepresentation - overview

Question 1

what are the 3 criteria for misrepresentation?

Answer 1

1. FALSE statement of existing or past fact
2. made by one party to the other
3. that induces the contract

Question 2

How can conduct become misrepresentation?

Answer 2

conducting oneself in a certain way to portray something as true when it is not.

Question 3

Spice Girls LTD v Aprila World Service [2000]

Answer 3

key case for CONDUCT misrepresentation
the spice girls were filming an advert together and had misled the company to believe that all spice girls would remain in the band, but one left

Question 4

what 2 situations can mean that expressions of opinion can amount to misrepresentation?

Answer 4

1. Having specialist knowledge
2. Being in a position to know the facts

Question 5

ESSO v Marden [1976]

Answer 5

key case for specialist knowledge
Footfall of garage was misrepresented by sellers, ESSO, who knew more about garages than the buyer.

Question 6

Smith v Land and House property corp (1884)

Answer 6

Key case for being in a position to know true facts
Seller of property claimed their tennant was ‘most desirable’ but failed to tell the buyer that they were in arrears.

Question 7

Bisset v Wilkinson [1927]

Answer 7

Key case for expression of opinion
seller said they estimated land to hold 2000 sheep but had never farmed sheep before therefore this was only an opinion, NOT misrepresentation

Question 8

How can statements of intention become misrepresentation ?

Answer 8

Can become false statements of fact if there was never an intention to carry out stated intent.

Question 9

Edgington v Fitzmaurice (1885)

Answer 9

key case for statements of intention
company had no intention to expand company using investment monies, and instead cleared their debts.

Question 10

What are the 4 exceptions of silence as misrepresentation?

Answer 10

Specialist types of contracts - good faith
Active concealment - Gordon v Selico (dry rot)
Change of Circumstance - With v O’Flannagan (Drs surgery)
Half truths - Dimmock v Hallet (tennant was already leaving)

Question 11

Smith v Hughes (1871)

Answer 11

key case for silence
Defendant sold some oats to claimant knowing they were for horse feed, but failed to disclose they would not be suitable.
NOT misrepresentation

Question 12

Pankhania v Hackney LB [2002]

Answer 12

Key case for false statements of law
buyer told that tennants could be evicted in 3 months, but the tennants were protected against this with the Landlord Tennants Act 1954

Question 13

What is the effect of misrepresentation?

Answer 13

contract voided