misrepresentation

• misrepresentation

  this occurs when pre-contractual statements that influence a decision on whether to make a contract turn out to be false. the contract is valid but voidable, meaning the innocent party has the option to take action, but they don't have to if they want to continue
• false statements

  the statement must be false, meaning it is not true or accurate. the extent of a person's knowledge of the accuracy of the statement when it is made defines the type of misrepresentation it might be
• can silence amount to misrepresentation

  generally, no. anything that is said must be true, but there is no duty on a person wishing to enter a contract to make any statement about what is being offered (Fletcher v Krell)
• a false statement doesn't have to be written, it can be made by:

  • the circumstances which the contract was negotiated (Spice Girls v Aprilia)
  • part-truths (Dimmock v Hallett)
  • if the relationship of the parties is based on trust, silence can be misrep (Tate v Williamson)
  • when the contract is of good faith, all material facts must be disclosed (Lambert)
  • if a statement was true when it was made but becomes false after contract, still misrep (With v O'Flannagan)
  • statement of future intent can be false (Edington)
• the false statement must be made by a party to the contract

  d is not liable for statements made by anothers who are not parties to the contract
• material fact

  must be a statement as a fact rather than an opinion (Bisset v Wilkinson)
• induced the party to enter the contract

  the false statement must lead the other party into making the contract, the other party must have relised on the statement

  (Avon Insurance) - not primary inducement

  (Attwood v Small)

  where misrep is fraudulent, the false statement must have at least a partial factor in inducing the other party

  (RZB v Royal Bank ff Scotland) - for other types of misrep the party would not have entered the contract 'but for' the statement being made