Misrep revision
Definition – An untrue statement of fact made by one party to induce the other into entering
into the contract.
An untrue statement of fact
Can be made verbally, written or by conduct. (Spice Girls v Aprilia)
Silence is not Misrep (Fletcher v Krell) failure to speak following a change in circumstances
(With v O’Flanagan) truth but not the whole truth is Misrep (Dimmock v Hallet)
Contracts of utmost good faith – Must disclose all material facts. (Lambert v Cooperative
Insurance Society) –
Of material fact not opinion
Opinion does not amount to Misrep. (Bisset v Wilkinson) a statement of future intention is
material fact (Edington v Fitzmaurice)
Made by the parties to a contract
If the statement is made my a third party this is not Misrep unless it is their agent.
Induces into the contract
What the reasonable man would or wouldn’t do does not count only the parties reliance on the
contract, the party must have relied on the contract and therefore they have been induced into
it (Museprime Properties v Adhill Properties) the fact that the statement was relied on is
enough to amount to Misrep even if they could easily find out the truth (Redgrave v Hurd)
making own Judgements or investigations may still amount to Misrep (Small v Atwood=
Types of Misrep and their remedies
Fraudulent – A deliberate lie made knowingly, without belief in its truth or recklessly careless as
to whether the statement is true or false (Derry v Peek)
Rescission is available. Damages can be claimed under the tory of deceit. All direct
damages are recoverable not just those that are reasonably foreseeable. Consequential
losses are recoverable. Occasionally lost profits can be claimed (East v Maurer)
Definition – An untrue statement of fact made by one party to induce the other into entering
into the contract.
An untrue statement of fact
Can be made verbally, written or by conduct. (Spice Girls v Aprilia)
Silence is not Misrep (Fletcher v Krell) failure to speak following a change in circumstances
(With v O’Flanagan) truth but not the whole truth is Misrep (Dimmock v Hallet)
Contracts of utmost good faith – Must disclose all material facts. (Lambert v Cooperative
Insurance Society) –
Of material fact not opinion
Opinion does not amount to Misrep. (Bisset v Wilkinson) a statement of future intention is
material fact (Edington v Fitzmaurice)
Made by the parties to a contract
If the statement is made my a third party this is not Misrep unless it is their agent.
Induces into the contract
What the reasonable man would or wouldn’t do does not count only the parties reliance on the
contract, the party must have relied on the contract and therefore they have been induced into
it (Museprime Properties v Adhill Properties) the fact that the statement was relied on is
enough to amount to Misrep even if they could easily find out the truth (Redgrave v Hurd)
making own Judgements or investigations may still amount to Misrep (Small v Atwood=
Types of Misrep and their remedies
Fraudulent – A deliberate lie made knowingly, without belief in its truth or recklessly careless as
to whether the statement is true or false (Derry v Peek)
Rescission is available. Damages can be claimed under the tory of deceit. All direct
damages are recoverable not just those that are reasonably foreseeable. Consequential
losses are recoverable. Occasionally lost profits can be claimed (East v Maurer)
