Contract Law: Misrepresentation

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  • Created by: 10dhall
  • Created on: 18-08-18 22:08
What is misrepresentation?
A pre-contractual false statement that induces a contract - has to be a fact
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What is voidable?
Contract is valid but you can no longer continue with it, can sue for a voidable contract
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What is void?
No effect at the beginning, if there is a misrepresentation it makes your contract voidable, contract basically was never made
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What can amount to misrepresentation?
Silence, conduct, false statement, omission
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What are some case examples on misrepresentation?
Gordon v Selico: property, concealed dry rot. Horsfall v Thomas: defect gun, no inspection, no misrepresentation.
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What are the types of misrepresentation?
Fradulent, negligent, innocent
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What is fraudulent misrepresentation?
Knowing it is false, not believing it is true
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What is negligent misrepresentation?
An honest belief that the statement is true but no reasonable grounds for the belief, failed duty to use reasonable care and skill to check accuracy
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What is innocent misrepresentation?
Honestly believes the statement is true and reasonable grounds for that belief, however the statement turns out to be false
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What are the remedies for misrepresentation?
Rescission alone, rescission and damages, damages alone
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What is a rescission alone?
Setting aside the contract, this is available in all types unless the right to rescission is lost
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What is rescission and damages?
Both remedies are available in cases of fraudulent and negligent misrepresentation, in an innocent the remedy will be either one - not both
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What is damages alone?
Are available for all types, damages alone will be awarded when the right to rescission is lost
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What is a case on misrepresentation (celebrity)?
Spice Girls v April
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Can opinions form a misrepresentation?
Yes, if the person has specialist knowledge or is in a better position to know the truth
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What is a requirement for misrepresentation?
There has to be a false statement of fact or law - the representee has to show that the false statement induced them to enter the contract
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What statute is misrepresentation under?
S.2 (1) Misrepresentation Act 1967
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Where was fraudulent misrepresentation defined?
In Derry v Peek
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What is a wholly innocent misrepresentation?
When the representer can demonstrate reasonable belief in the truth of the statement
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Card 2

Front

What is voidable?

Back

Contract is valid but you can no longer continue with it, can sue for a voidable contract

Card 3

Front

What is void?

Back

Preview of the front of card 3

Card 4

Front

What can amount to misrepresentation?

Back

Preview of the front of card 4

Card 5

Front

What are some case examples on misrepresentation?

Back

Preview of the front of card 5
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