Misrepresentation

Question 1

Spice Girls v Aprilia

Answer 1

Making a statement can include words, pictures, advertising
and conduct.

Answer 2

Merely indicting that a contract cannot be completed, rather than making a threat with a demand, is not illegitimate pressure

Question 3

Fletcher v Krell

Answer 3

Silence or non-disclosure is usually NOT making a statement

Question 4

Tate v Williamson

Answer 4

Where the parties have a relationship of utmost confidence/trust, withholding information is making a false
statement.

Question 5

Dimmock v Hallet

Answer 5

Telling a half-truth (technically true but not fully accurate) is making a false statement.

Question 6

With v O’Flanagan

Answer 6

Where there had been a change of circumstances since the
first statement, not updating the other party is making a false
statement.

Question 7

CRA 2015

Answer 7

In B2C contracts, leaving out any details that allow a buyer to
make an informed decision is still making a false statement

Question 8

Bisset v Wilkinson

Answer 8

Statements of opinion are NOT statements of fact

Question 9

Smith v LHP

Answer 9

Special knowledge of a situation may make an opinion a statement of fact

Question 10

Edgington v Fitzmaurice

Answer 10

A statement of future intent will only be a fact if the representor
was lying about their intention.

Question 11

Dimmock v Hallet

Answer 11

Mere puff (something a reasonable person wouldn’t take seriously) is not a statement of fact.

Question 12

Carlil v Carbolic Smoke Ball

Answer 12

Sales talk that a reasonable person would take seriously will be
considered a statement of fact.

Question 13

Horsefall v Thomas

Answer 13

If the false statement made no difference to V’s decision to
contract, the statement did not induce them.

Question 14

Attwood v Small

Answer 14

If the false statement did not convince V to enter the contract, the statement did not induce them.

Question 15

Redgrave v Hurd

Answer 15

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.

Question 16

S2(1) Misrepresentation Act 1967 (innocent rep)

Answer 16

An innocent misrepresentation is where D believed the statement was true and had reasonable grounds to believe this.

Question 17

S2(1) Misrepresentation Act 1967 (negligent misrep)

Answer 17

A negligent misrepresentation is where D believed the statement was true but did NOT have reasonable grounds to believe this.

Question 18

Derry v Peek

Answer 18

A fraudulent misrepresentation is where D knows their statement is false.

Question 19

Vigers v Pike

Answer 19

Where it is impossible to return the parties to their original position, this will be a bar to rescission.

Question 20

Long v Lloyd

Answer 20

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.

Question 21

Leaf v IG

Answer 21

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.

Question 22

S2(2) Misrepresentation Act 1967

Answer 22

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.

Question 23

Lewis v Avery

Answer 23

Where the property has been given to an innocent third party,
this will be a bar to rescission.

Question 24

S2(1) Misrepresentation Act 1967 (negligent misrep remedies)

Answer 24

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.

Question 25

East v Maurer

Answer 25

Damages for fraudulent misrep can be gained in addition to rescission (so V can get damages even if rescission is barred). The damages can cover actual losses up to the trial AND future loss too.