Vitiating Factors Flashcards
(14 cards)
Definition of misrepresentation
An untrue statement of fact with induces you to enter into the contract
Stage one
Explain the nature of the misrep (identify the lie)
An opinion cannot be a misrepresentation
Bisset v Wilkinson
Saying something with no intention of doing it is a misrepresentation
Edgington v fitzmaurice
Misrepresentation by actions or conduct
Spice girls v Aprilla world
Silence cannot be a misrepresentation
Fletcher v krell
Part truth can be a misrepresentation
Dimmock v Hallet
If a statement is true when made, it can become a misrep if it becomes false before the contract is made
With v O’Flanagan
Stage two
Did the misrepresentation induce you to enter into the contract (Atwood v small)
Stage three
Identify the type of misrepresentation
Fraudulent misrepresentation
A statement made which you know is untrue
Negligent misrepresentation
When you tell an untrue statement and believe it’s true but have no reasonable grounds
Innocent misrepresentation
When you believe you are telling the truth and have reasonable grounds to believe it.
Remedies
Can claim rescission or damages for neg and fraud but only rescission for innocent