misrepresentations

Question 1

What is the effect of a misrepresentation?

Answer 1

A misrepresentation makes a contract voidable. This means the contract is valid unless the person who has suffered the misrepresentation takes action to end the contract

Question 2

What is recession?

Answer 2

Recession occurs when there has been a misrepresentation. The person who suffered the misrepresentation can make the contract void.

Question 3

What must there be for a misrepresentation?

Answer 3

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

Question 4

Fletcher v Krell

Answer 4

silence cannot be a misrepresentation

Question 5

With v O’Flanagan

Answer 5

a statement can be true initially but become a misrepresentation by the time of making the contract

Question 6

Tate v Williamson

Answer 6

where the relationship between the parties is based on trust rather than silence may be a misrepresentation

Question 7

Dimmock v Hallett

Answer 7

silence can be a misrepresentation when a statement that is made is a half truth

Question 8

Spice Girls LTD v Aprillia

Answer 8

a statement does not need to be words it can be actions

Question 9

The Consumer Insurance (disclosure and representations) Act 2012

Answer 9

a consumer need not volunteer information but has a duty to answer questions honestly and reasonably

Question 10

Bisset v Wilkinson

Answer 10

must be a statement of fact not an opinion

Question 11

Edington v Fitzmaurice

Answer 11

a statement of intention is a promise to do something in the future. This is not a statement of fact unless the person making the statement has no intention of carrying it out

Question 12

What should be considered if something is made by a party to the contract?

Answer 12

a review of an item cannot be a misrepresentation

Question 13

Section 12 The Consumer Rights Act 2015

Answer 13

> the trader has to provide certain information to the consumer before the contract becomes binding
it is considered to be misleading when a trader deliberately misses out key information that the consumer might need to make an informed decision

Question 14

The Misrepresentation Act 1967

Answer 14

innocent misrepresentation; when a false statement has been made honestly - recission or damages

Question 15

What are the two types of remedies available?

Answer 15

Negligent Misrepresentation: a false statement that has been made by a person who believes it to be true but has no grounds to believe it to be true (Recission and damages - discretionary remedies)
Fraudulent Misrepresentation: a false statement made by someone who knows it isn’t true (recission and damages - not discretionary)