Topic 4- Misrepresentation, Duress and Undue Influence
Approaching a misrepresentation problem question:
1. Establish a claim
Misrepresentation: A false statement of fact that induces another to enter a contract
Must include:
A false statement
Of existing or a past fact
Made by one party to another
Which makes the other party enter into the contract
2. Remedies
The nature of the remedy depends on the type of misrep (fraud, innocent, negligent)
Rescission: Victim may choose to put the contract aside, contract is voidable but not void
Damages: Victim may also be able to claim damages
A false statement:
Silence doesn’t lead to misrep but there are some exceptions
Contracts of the upmost good faith: duty to disclose material facts, if you stay silent the
contract can be void
Continuing Representations: Duty to disclose facts if they have changed before the contract
is entered into (profits fall since the first meeting)
With v O’Flanagan 1936
Doctor was selling the practice
The first meeting the profits were high
They then fell, and the doctor didn’t tell the buyer
There was a duty to keep the buyer up to date
Implied Representations “Half-truths”: Facts were supressed
Dimmock v Hallett 1866
Told the buyer that all the farms are fully let
But it was a half-truth because one tenant said that they were going to leave
Spice Girls Ltd v Aprilia World Service BV 2002
Approaching a misrepresentation problem question:
1. Establish a claim
Misrepresentation: A false statement of fact that induces another to enter a contract
Must include:
A false statement
Of existing or a past fact
Made by one party to another
Which makes the other party enter into the contract
2. Remedies
The nature of the remedy depends on the type of misrep (fraud, innocent, negligent)
Rescission: Victim may choose to put the contract aside, contract is voidable but not void
Damages: Victim may also be able to claim damages
A false statement:
Silence doesn’t lead to misrep but there are some exceptions
Contracts of the upmost good faith: duty to disclose material facts, if you stay silent the
contract can be void
Continuing Representations: Duty to disclose facts if they have changed before the contract
is entered into (profits fall since the first meeting)
With v O’Flanagan 1936
Doctor was selling the practice
The first meeting the profits were high
They then fell, and the doctor didn’t tell the buyer
There was a duty to keep the buyer up to date
Implied Representations “Half-truths”: Facts were supressed
Dimmock v Hallett 1866
Told the buyer that all the farms are fully let
But it was a half-truth because one tenant said that they were going to leave
Spice Girls Ltd v Aprilia World Service BV 2002
