Vitating Factors Flashcards
What is a vitiating factor?
A vitiating factor makes a contract void or voidable meaning the contract has no legal standing
What two types of vitiating factors are there?
Misrepresentation and economic duress
What is the definition of a misrepresentation?
A pre- contractual statement that is false, must be of material fact, made by someone who was a party to the contract, that induced the other party to enter the contract .
What is the first rule of a false statement?
It can be written or verbal or shown
(Spice girls)
What is the exception to a false statement?
Silence - cannot amount to a false statement (fletcher v krell)
Unless;
- it was a half truth (dimmock v hallet)
- where circumstances change (with v oflanagan)
- relationship of trust between the parties (Tate v Williamson)
- insurance contracts (lambert v cooperative insurance)
What does it mean by material facts?
It must not be opinion (bisset v
Wilkinson)
Which case shows who was a party to the contract?
Atwood v small :
What are the three types of misrep?
Innocent
Negligent
Fraudulent
What is an innocent misrepresentation?
A representation which is held on reasonable grounds and is a false statement made honestly.
The person making the statement always believed it to be true
What are the remedies available for an innocent misrep ?
Recission = putting parties back to original position
OR
Damages
The judge can decide not to grant remedies. How are these decided ?
Restitution is impossible
(Clarke v Dickson)
Claimant has affirmed the contract
(long v Lloyd)
Delay - between bringing the claim
(Leaf v international galleries)
3rd party has gained rights over the property
(Lewis v avery)
Which two types of misreps are under the Misrepresentation Act 1967?
Negligent and innocent
What is a negligent misrepresentation?
A false statement made by a person who had no reason to believe was true - it was not deliberate but made carelessly
Which case represents a negligent misrepresentation?
Howard Marine v Ogden
HM could have checked the ships own documents - this is careless
What are the remedies for negligent misrepresentation?
Recission
AND/OR
damages - calculate by tort
