Misrepresentation

Question 1

Misrepresentation

Answer 1

A false statement made by a party to the contract that induces the other party to enter the contract

Question 2

False statement

Answer 2

Silence cannot be a false statement

Question 3

Fletcher v krell

Answer 3

Woman applied for job of government- not asked and did not state she was divorced- in Victorian times she would not of been offered the job- silence so no misrepresentation

Question 4

With v o Flanagan

Answer 4

Doctor accurately stated the profits of his medical practice made with a view to inducing purchases to but the practice, however between the statement being made and the contract his profits fell- even if a statement is true it can become a misrepresentation if it becomes false before the contract is made

Question 5

Dimmock v hallett

Answer 5

A sell of land told the purchaser truthfully there was tenants on the land but did not tell him they were leaving- this part truth was a misrepresentation

Question 6

Tate v Williamson

Answer 6

Financial adviser advices his client to sell some land for less that shld outs value so that his client could clear his debt, adviser than purchased the land himself but did not tell is client- court decided failure to disclose was a breach of trust and a misrepresentation

Question 7

Lambert v cooperative insurance society

Answer 7

A women renewed her jewellery insurance policy and did not tell the insurance company her husband had recently been convicted of conspiracy to steal, her silence was a misrepresentation- consumer insurance act 2012

Question 8

Spice girls ltd v aprilia world service

Answer 8

Spice girls signed a sponsorship agreement with aprilia, whilst areeement was being negotiated geri had given her notice to leave the group, filming advertisement was worthless when she left- court decided filming with all of the represented none of them were intending to leave so was a misrepresentation

Question 9

Bisset v Wilkinson

Answer 9

Seller of farmland that had never has sheep on it asked the buyer how many sheep it could take he estimated about 2000 this was wrong but as he thought it was right it was not a misrepresentation

Question 10

Edgington v fitzmaurice

Answer 10

Claimant invested in a company the directors of the company falsely stated that the investment was to be used to complete alterations to the buildings of the company and other developments, in fact it was used to pay of debts- misrepresentation

Question 11

Attwoord v small

Answer 11

Seller of a mine made a false statement to the purchaser about the earnings from a mine. The buyer instructed a surveyor to confirm this statement to be untrue, which he did. The purchaser brought the mine and then discovered the statement to be untrue. There was no misrepresentation as the purchaser relied on the survey report and not the sellers statement

Question 12

Redgrave v Hurd

Answer 12

The purchaser of a solicitors practice was given a set of accounts to look at. The seller verbally misled the purchaser as to the true earnings. He re;ied on the statement and did not look at the accounts. Has he done so he would have seen that the3 sellers statement was false. He was entitled to rely on the sellers statement which was a misrepresentation

Question 13

Muse prime

Answer 13

The purchaser of property relied on inaccurate statements about rents made in auction particulars. The defendant argues that no reasonable purchaser would have relied on these statements and would have made other requires however there was reliance so there was misrepresentation

Question 14

What are the 3 types of misrepresentation

Answer 14

Innocent, negligent and fraudulent

Question 15

Innocent misrepresentation

Answer 15

Misrepresention act 1967- one which is genuinely held on reasonable grounds- remedie is recision OR damages

Question 16

Negligent misrepresentation

Answer 16

False statement made by a person who had no reasonable grounds or believing it to be true can be under common law or the act

Question 17

Under common law tort of negligence

Answer 17

Hedley Byrne & co lets v heller & partners Ltd- can sue for economic loss

Question 18

Under the misrepresentation act negligent misrepresentation

Answer 18

Statutory liability for negligent misrepresentation which does not require there to be a special relationship between the parties

Question 19

Howard marine v ogden

Answer 19

Hired 2 dredges from Howard marines for £1800 per week to carry out works for Northumbrian water authority, asked Howard for the capacity of the barge, checked Lloyd’s register which stated was 850 m, this was wrong therefore the week took much longer

Question 20

Fraudulent misrepresentation

Answer 20

Where they know it is untrue

Question 21

Derry v peek

Answer 21

A tram company used horse to pull its trains, believed the board of trade would consent using motor driven to the company but did not check, got investors but then did not get consent- not freudlent

Question 22

Recession

Answer 22

Parties will be returned to their original positions- cannot if- impossible, contract is affirmed, delay, third party had gained rights over the property

Question 23

Clarke v Dickson

Answer 23

Recession not avalibkle- could not return partnership at a firm as it had become a limited company

Question 24

Long v Lloyd

Answer 24

Claimed brough lorry- noticed it faults and offered to pay half- could not grant recession after as he had affirmed the contract

Question 25

Leaf v international galleries

Answer 25

Purchased a painting and tried to sell it years later and found it was not by the artist- delay so cannot have a remedie

Question 26

Lewis v averay

Answer 26

Sold car and let buyer take car away in exchange for check- check was worthless- car was already sold to third party so could not claim rescission

Question 27

How does the consumer insurance act 2012 operate

Answer 27

If do not know you should disclose any information can still claim less the extra the would have charged