7. Misrepresentation
7.1 Locating misrepresentation in the law of obligations
misrepresentation
false statement of fact made by one party which induces that other
party to enter into the contract
fraudulent misrepresentation
person makes a false statement they know isn’t true or is make
recklessly, not caring whether its true or not
negligent misrepresentation
person makes false statement he believes to be true without reasonable
grounds
voidable contracts
valid but damages
defect in contract
rescission
allows partied to unwind contract
puts parties in position they were in before contract
damages
secondary obligation to pay money in response to breach of primary
obligation
7. Misrepresentation 1
, 7.2 Basic requirements
key elements
false statement
of existing or past fact
made by one party to another
that induces contract
false statement
duty to speak up
silence does not give rise to liability
exceptions
implied representations
implied by conduct
implied by another statement
Spice Girls Ltd v Aprilia World Service (2002)
existing or past fact
statements or facts must be distinguished from other statements
‘mere puffs’
genuine belief or opinion
7. Misrepresentation 2
7.1 Locating misrepresentation in the law of obligations
misrepresentation
false statement of fact made by one party which induces that other
party to enter into the contract
fraudulent misrepresentation
person makes a false statement they know isn’t true or is make
recklessly, not caring whether its true or not
negligent misrepresentation
person makes false statement he believes to be true without reasonable
grounds
voidable contracts
valid but damages
defect in contract
rescission
allows partied to unwind contract
puts parties in position they were in before contract
damages
secondary obligation to pay money in response to breach of primary
obligation
7. Misrepresentation 1
, 7.2 Basic requirements
key elements
false statement
of existing or past fact
made by one party to another
that induces contract
false statement
duty to speak up
silence does not give rise to liability
exceptions
implied representations
implied by conduct
implied by another statement
Spice Girls Ltd v Aprilia World Service (2002)
existing or past fact
statements or facts must be distinguished from other statements
‘mere puffs’
genuine belief or opinion
7. Misrepresentation 2
