Misrepresentation

• What is misrepresentation?


  a false or misleading statement of fact, made before or at the time of the contract, which induces the other party to enter the contract
• What is a false statement?

  can be written, spoken, or by conduct
• What doesn't usually amount to misrepresentation?

  silence does not usually amount to a misrepresentation
• What case is used for false statement which involved silence?

  Fltcher v Krell
• What is the point of law of fletcher v krell?

  no misrepresentation when a governess didn't disclose her marital status and she wasnt asked about it
• A false statement includes actions taken to convey a false or misleading impression
• give a case for actions taken (false statement)

  Gordon v Selico
• What is the point of law of Gordon v Selico?

  seller of a house took steps to conceal dry rot from the buyer. This conduct amounted to a representation that the house did not suffer from dry rot
• A false statement includes conduct which conveys a false or misleading impression
• Give a case for conduct which conveys a false or misleading impression

  Spice girls v Aprilia
• What happened in Spice Girls v Aprilia


  Filming the TV ad was a false statement by conduct that none of the Spice Girls intended to leave the group
• What happens when there's a change in circumstances?

  If the circumstances change so that a true statement becomes false before the contract is agreed, there is a duty to disclose the change
• What case is used for changing circumstances?

  With v O'Flanagan
• What was the point of law of With v O'Flanagan?

  When an estimate of income fell from $2000 to less, D was under a duty to disclose this before the contract was agreed
• Explain half truths

  A false statement includes one which is misleading (even if theres some truth to it)
• What case is used for half truths?

  Dimmock v Hallett
• What is the point of law for Dimmock v Hallett?

  A seller told buyer that a farm would be sold with tenants but failed to mention the tenants had given notice to leave
• Explain the duty for insurance contracts

  There is a duty to take reasonable care not to make a misrepresentation when applying for insurance
• What Act is used for insurance contracts?

  Consumer Insurance (Disclosure and Representations) Act 2012. If a misrepresentation has been made it may invalidate the policy
• Explain the law on consumer contracts

  If a business hides or misses out key information that the average consumer would need to make an informed decision about entering a transaction, this will be a misrepresentation
• Give the Act for consumer Contracts

  Consumer Protection Regulations 2008
• What is a statement of fact?

  It must be objectively verifiable, rather than an opinion or belief
• Give a case for statement of fact

  Bissett v Wilkinson
• What was the point of law for Bissett v Wilkinson?


  A mere opinion cannot form the basis of a misrepresentation
• If an opinion is not honestly held, this can be regarded as a statement of fact
• What case is used for an opinion not honestly held?

  Smith v Land and House Property Corp
• What is the point of law for Smith v Land and House Property Corp?

  Seller knew the tenant was behind on rent and on verge of bankruptcy and said they are the most desirable tenant
• What is implied representations?

  Statements of opinion made by an expert may be treated as a statement of fact
• Give a case for implied representations- experts


  Esso V Mardon
• Explain statements of intent

  A statement of future intention is not a fact unless it is knowingly false
• Give a case for statements of intent


  Edgington v Fitzmaurice
• What was the point of law in Edgington v FitzMaurice?

  Since the company never intended to use the money as suggested, this amounted to a false statement of fact
• Inducement - The misrepresentation must be a significant factor which led to claimant entering the contract
• What is a case for a significant factor which led to the claimant entering the contract?

  Attwood v Small
• What is the point of law in Attwood v Small?

  No inducement where the false statement wasnt relied upon. The buyer had relied on his own surveyor's report
• inducement - the critical point is that the false statement is relied upon
• What is the case for the critical point?

  Redgrave v Hurd
• What was the point of law in redgrave v hurd?

  It does not matter if the victim could have discovered the truth by taking reasonable steps or it was unreasonable to rely on the untrue statement
• Explain before or at the time of the contract

  No inducement where statement was made after the contract had been concluded
• What case is used for before or at the time of the contract?

  Roscorla v Thomas