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Contract law > Vitiating factors- misrepresentation > Flashcards

Vitiating factors- misrepresentation Flashcards

1
Q

Define misrepresentation

A

A false statement made during the formation of a contract that induces a party to enter the contract

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2
Q

What are the 4 criteria for a misrepresentation

A
  • wrongful party made false statement
  • statement must relayed to material facts of contract
  • statement must be made by party to contract
  • statement must induce party to enter contract
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3
Q

Explain the 1st criteria of misrepresentation (wrongful party made false statement)

A

Can be verbal written or by conduct
Misrepresentation cant be made by silence
Misrepresentation must be ongoing and become false
Non disclosure of whole truth can be a misrepresentation when there’s a position of trust
Half truth is a misrepresentation

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4
Q

Whats the case for position of trust

A

Tate v Williamson

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5
Q

What’s the case for misrep must be ongoing and become false

A

With v Flanagan

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6
Q

Whats the case for silence cant amount to a misrep

A

Spice girls v Aprilia

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7
Q

Whats the case for half truth

A

Dimmock v hallett

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8
Q

Explain the 2nd criteria of misrepresentation (statement must relate to material facts of contract)

A

Statement of opinion/marketing gimmick/ statement of future intention= not statement of material fact

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9
Q

Whats the case for the 2nd criteria of misrep (statement must relate to material facts of contract)

A

Bissett v Wilkinson

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10
Q

Explain the 3rd criteria of misrep (statement must be made by party to contract)

A

3rd party inducing party to enter contract doesn’t make the original party accountable

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11
Q

Give an example for the 3rd criteria of misrep (statement must be made by party to contract)

A

Magazine presenting false info about product, individual purchase product, no claims can be made against the company of the product

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12
Q

Explain the 4th criteria of misrep (statement must induce party to enter contract)

A

If misrep is affirmed by 3rd independent party, the fact that c sought confirmation suggests the misrep didn’t induce the contract

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13
Q

What cases says that if confirmation is sought out, it means the party hasn’t been induced

A

Atwood v small

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14
Q

Redgrave v Hurd (statement must induce party to enter contract)

A

Not matter that c could have sought info that proved representation was false

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15
Q

What are the 3 types of misrepresentation

A

Innocent misrep
Negligent misrep
Fraudulent misrep

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16
Q

What is innocent misrepresentation

A

Where the party believes the info they have given to be true

17
Q

What are the 4 things that make rescission unavailable in innocent misrepresentations

A

Return to original pre-contractural position not possible
Contract was affirmed
Delay
3rd party gained right over property

18
Q

Explain what is meant by return to pre contractural position not possible

A

Party destroyed/disposed of property

19
Q

Explain what is meant by contract affirmed, include a case

A

Suffering party continues with contract after becoming aware of the misrep (long v Lloyd)

20
Q

Explain what is meant by delay, include a case

A

Delay between the contract and the complain may mean that party losses right to rescind contract (leaf v international galleries)

21
Q

Explain what is meant by 3rd party gained right over property, include a case

A

Goods cant be returned to original party as it would be unfair on innocent 3rd party (Lewis v avery)

22
Q

What are the remedies for innocent misrepresentation

A

Rescission- treat contract as if it hadn’t happened, return c to position before contract

23
Q

What is negligent misrepresentation

A

Where the party has no reasonable grounds to believe statement they gave to be true, but the misrep wasn’t deliberate

24
Q

For negligent misrep, what are the 2 places the c can make a claim under

A

Law of contract (s2(1) misrep act)
Law of negligence (hedley Byrne v heller)

25
Q

What must be proved in negligent misrepresentation

A

That the d was negligent in presenting the info, and that they had reasonable grounds in making the representation

26
Q

What case can be used for negligent misrepresentation

A

Ogden v Howard marine

27
Q

What are the remedies for negligent misrep

A

Rescission
Damages- where not fair to rescind

28
Q

What is fraudulent misrepresentation

A

Where the wrongful party make a statement knowing it to be untrue or are reckless as to whether its untrue

29
Q

What case can be used for fraudulent misrep

A

Hurst v hone

30
Q

What are the remedies for fraudulent misrepresentation

A

Rescission
Damages

Contract law (12 decks)

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