Misrepresentation
Term – misrep, termination – to put the party in the position
they would’ve been had the contract been performed as
promised.
Misrepresentation: Rescission (damages for
misrepresentation) -To put party back in the position they
were in before the contract was made.
Actionable misrepresentation:
A misrepresentation is a false statement of fact, made to the
claimant, which induced him to enter a contract.
1) Statement
2) False
3) Made to the other party
4) Inducement
1) Statement:
a) Silence-
Keates v Earl of Cadogan – Earl leant house to Mr. Keates and
knew Keates wanted to live in this house but knew the house was
about the fall down. Keates wanted to get out of contract after
seeing the house. Ct said Earl never said house was liveable – no
false statement. Silence can’t be misrepresentation.
Caveat Emptor – Let the buyer beware, buyer should have asked
about quality of goods and make necessary enquires. Sellers
have no liability to say- just can’t make a false statement.
Exception:
- Contracts of “the utmost good faith” (uberrmiae fidei) – these
kind of contracts it is near enough impossible for the other
party to find out all the facts – e.g. insurance contracts
b) Conduct-
Spice girls Ltd v Aprilia World Service – contract with Italian
company, to sponsor them in their tours. Contracted concluded –
company thought Spice Girls would stay together- Spice girls
knew one of the girls was going to leave the group in May, before
the tour, but also never said explicitly they were going to stay
together. Ct said conduct made a statement they would stay
together – going to a photo shoot and appearing as a group-
therefore saying they would stay together.
Gordon v Sellico – Flat covered in dry rot. Seller employed
contractor to get rid of dry rot. Contractor didn’t do job and just
covered it up. Buyers sued for misrep, because dry rot came
through. Seller didn’t say anything – but Ct said conduct made a
statement, by covering it up – saying it was in good condition.
c) Mere puff-
Dimmock v Hallett – sale about land, that the land would be
fertile – but it was actually useless and wasteland. Ct said that
Term – misrep, termination – to put the party in the position
they would’ve been had the contract been performed as
promised.
Misrepresentation: Rescission (damages for
misrepresentation) -To put party back in the position they
were in before the contract was made.
Actionable misrepresentation:
A misrepresentation is a false statement of fact, made to the
claimant, which induced him to enter a contract.
1) Statement
2) False
3) Made to the other party
4) Inducement
1) Statement:
a) Silence-
Keates v Earl of Cadogan – Earl leant house to Mr. Keates and
knew Keates wanted to live in this house but knew the house was
about the fall down. Keates wanted to get out of contract after
seeing the house. Ct said Earl never said house was liveable – no
false statement. Silence can’t be misrepresentation.
Caveat Emptor – Let the buyer beware, buyer should have asked
about quality of goods and make necessary enquires. Sellers
have no liability to say- just can’t make a false statement.
Exception:
- Contracts of “the utmost good faith” (uberrmiae fidei) – these
kind of contracts it is near enough impossible for the other
party to find out all the facts – e.g. insurance contracts
b) Conduct-
Spice girls Ltd v Aprilia World Service – contract with Italian
company, to sponsor them in their tours. Contracted concluded –
company thought Spice Girls would stay together- Spice girls
knew one of the girls was going to leave the group in May, before
the tour, but also never said explicitly they were going to stay
together. Ct said conduct made a statement they would stay
together – going to a photo shoot and appearing as a group-
therefore saying they would stay together.
Gordon v Sellico – Flat covered in dry rot. Seller employed
contractor to get rid of dry rot. Contractor didn’t do job and just
covered it up. Buyers sued for misrep, because dry rot came
through. Seller didn’t say anything – but Ct said conduct made a
statement, by covering it up – saying it was in good condition.
c) Mere puff-
Dimmock v Hallett – sale about land, that the land would be
fertile – but it was actually useless and wasteland. Ct said that
