Misrepresentation

Question 1

What is a representation?

Answer 1

A statement of material fact said during contract negotiations which has persuaded a party or parties to enter into the contract and isn’t binding on the parties.

Question 2

What case shows that a representation Is a statement of material fact?

Answer 2

Bisset v Wilkinson 1927

Question 3

What cases show that a representation can be incorporated into a contract and why?

Answer 3

Bannerman v white 1861
Dick bentley v Harold smith 1965
(Both clear and intended to be binding)

Question 4

What case is a less likely scenario of the representation and why?

Answer 4

Routledge v Mckay 1954
(Casual, not relied upon)

Question 5

What is a misrepresentation?

Answer 5

When a representation is made falsely.

Question 6

What happened when a representation become a term?

Answer 6

It becomes binding on all parties

Question 7

What are the three types of misrepresentation?

Answer 7

Fraudulent, Negligent and Innocent

Question 8

What makes a misrep fraudulent?

Answer 8

If the person making it at the time knows it is false but chooses to mislead the other party

Question 9

Case example of fraudulent misrepresentation?

Answer 9

Thomas Witter v TBP industries 1996

Question 10

What is the remedy for fraudulent misrep.?

Answer 10

Damages under the tort of deceit. S2(1) of the Misrepresentation act 1967. Rescission.

Question 11

Define Negligent Misrep.and case

Answer 11

The person making the statement was in possession of the type of knowledge required. (Hedley Byrne v Heller 1964)

Question 12

What does Hedley Byrne v Heller 1964 say about Negligent Misrep?

Answer 12

1. Has to have sufficient proximity or a special relationship
2. Both parties aware of reliance between parties

Question 13

What is innocent misrep and case?

Answer 13

Party makes a false statement that they honestly believe to be true. (Redgrave v Hurd 1881)

Question 14

What section allows the judge to choose the remedy and details and case?

Answer 14

Judge has discretion under s2(2) to choose the remedy. (William Sindall v Cambridgeshire council 1994).

Question 15

Factors and cases for economic duress

Answer 15

1. Pressure exerted on
   party – [Atlantic Baron 1979]
2. Pressure was illegitimate – Atlas Express v Kafco (1989)
3. Pressure induced the claimant to enter the contract – Barton v
   Armstrong (1975)
4. Claimant had no choice but to enter the contract – Universe
   Tankships v International Transport Workers (1983)
5. The claimant protested at the time or shortly after - The Atlantic Baron (1979)

Question 16

Full definition of a misrepresentation which includes cases

Answer 16

A statement of material Fact (bisset v Wilkinson 1972) made by one party to the Contract to another party (Peyman v Lanjani 1885) during the negotiations leading up to the formation of the contract (Roscorla v Thomas 1842) which induced the party to enter the contract (JEB Fasteners v Marks Bloom 1963) but wasn’t intended to be a binding obligation and which was untrue or incorrectly stated (Couchman v Hill 1947)