Misrepresentation

Question 1

What is a misrepresentation?

Answer 1

False statement of fact, made before or at the time of the contract, which induces the other party to enter into the contract

Question 2

What are the 3 elements needed?

Answer 2

• False statement
• Of fact
• Which induces the other party to enter into the contract

Question 3

1) False statement

Answer 3

• Can be in any form (spoken/written/conduct) that would influence another’s decision to contract
• Silence does not amount to misrepresentation

Question 4

Case for false statement

Answer 4

Spice Girls v Aprilia

Question 5

Case for silence

Answer 5

Fletcher v Krell

Question 6

What are the 4 exceptions to the silence rule?

Answer 6

• Change of circumstances
• Omissions in the consumer context
• Insurance contracts
• Making of a half truth

Question 7

Changing circumstances

Answer 7

The statement was true when it was made but due to change has become false by the time the contract is entered into

Question 8

Case for changing circumstances

Answer 8

With v O’Flanagan

Question 9

Half truths

Answer 9

If what is said is true but misleading as it fails to present the whole picture

Question 10

Case for half truths

Answer 10

Dimmock v Hallett

Question 11

Consumer insurance contracts

Answer 11

Under the Consumer Insurance (Disclosure and Representations) Act 2012 an applicant has a duty to take reasonable care to answer questions honestly

Question 12

Case for consumer insurance contracts

Answer 12

Lambert v Co-Operative Insurance Society

Question 13

Omissions in the consumer context

Answer 13

• Under the Consumer Protection Regulations Act 2008 its where a trader misses out key info the consumer may need to make an informed decision
  Occurs when the trader:
• Omits material info the average consumer needs
• Hides/provides material info in an unclear/ambiguous manner
• Fails to identify that a transaction has a profit-making motive

Question 14

2) Statement of fact

Answer 14

Must be a false statement of material fact, not a belief/opinion

Question 15

Case for statement of fact

Answer 15

Bissett v Wilkinson

Question 16

Expert

Answer 16

Generally assumed they know of facts to justify their opinion: implied representation of fact

Question 17

Case for expert

Answer 17

Esso v Mardon

Question 18

Statement of future intention

Answer 18

• Not a fact
• However intention can become fact if the statement maker has no intention of carrying it out

Question 19

Case for statement of future intention

Answer 19

Edgington v Fitzmaurice

Question 20

3) Inducement

Answer 20

The false statement must induce the other party to enter into the contract: must actually be relied upon (but need not be the only reason)

Question 21

Case for inducement

Answer 21

Attwood v Small

Question 22

Statement made after agreement

Answer 22

Cannot be misrepresentation as it had no effect on the formation of the contract

Question 23

Case for statement made after agreement

Answer 23

Roscorla v Thomas