Spice Girls v Aprilia
Making a statement can include words, pictures, advertising and conduct.
Fletcher v Krell
Silence or non-disclosure is usually NOT making a statement
whats not illegimate pressure
Merely indicting that a contract cannot be completed, rather than making a threat with a demand, is not illegitimate pressure
Tate v Williamson
Where the parties have a relationship of utmost confidence/trust, withholding information is making a false statement.
Dimmock v Hallet
Telling a half-truth (technically true but not fully accurate) is making a false statement.
With v O’Flanagan
Where there had been a change of circumstances since the first statement, not updating the other party is making a false statement.
CRA 2015
In B2C contracts, leaving out any details that allow a buyer to make an informed decision is still making a false statement
Bisset v Wilkinson
Statements of opinion are NOT statements of fact
Smith v LHP
Special knowledge of a situation may make an opinion a statement of fact
Edgington v Fitzmaurice
A statement of future intent will only be a fact if the representor was lying about their intention.
Dimmock v Hallet
Mere puff (something a reasonable person wouldn’t take seriously) is not a statement of fact.
Carlil v Carbolic Smoke Ball
Sales talk that a reasonable person would take seriously will be considered a statement of fact.
Horsefall v Thomas
If the false statement made no difference to V’s decision to contract, the statement did not induce them.
Attwood v Small
If the false statement did not convince V to enter the contract, the statement did not induce them.
Redgrave v Hurd
If the false statement convinced V to enter the contract, V was induced even if they did not take reasonable steps to check the statement.
S2(1) Misrepresentation Act 1967
An innocent misrepresentation is where D believed the statement was true and had reasonable grounds to believe this.
S2(1) Misrepresentation Act 1967
A negligent misrepresentation is where D believed the statement was true but did NOT have reasonable grounds to believe this.
Derry v Peek
A fraudulent misrepresentation is where D knows their statement is false.
Vigers v Pike
Where it is impossible to return the parties to their original position, this will be a bar to rescission.
Long v Lloyd
Where the parties have agreed to continue with the contract after discovering the mistake, the contract has been affirmed and this is a bar to rescission.
Leaf v IG
Where there is a long delay between the false statement and suing, there is a bar to rescission.
Note: the delay for fraudulent misrep only starts once the lie is discovered, whereas the other 2 types start when the lie is first told.
Lewis v Avery
where the property has been given to an innocent third party, this will be a bar to rescission.
S2(2) Misrepresentation Act 1967
Damages for innocent misrep can only be gained as a substitute for rescission (so if rescission is barred, V can’t get any damages).
The damages would only cover actual losses up to the trial.
S2(1) Misrepresentation Act 1967
Damages for negligent misrep can only be gained as a substitute for rescission (so if rescission is barred, V can’t get any damages).
The damages can cover actual losses up to the trial AND future loss too.
