Misrepresentations

• Misrepresentations = Is a false state, factor or opinion. There is importance. Knowledge or skill of the person making the statement. Written contract
• Elements of misrepresentations

  • False statement of fact
  • Statement of material fact not one of opinion
  • Must be made by a party to the contract of their agent - privity
  • Induces the other party to enter into the contact - It was the misrepresentation that led you into going into the contract
• Untrue statement

  (Fletcher v Krell) - Silence did not amount to misrepresentation unless they had a duty to communicate it
• Certain types of contracts have stricter requirements

  Fiduciary relationships - Relationships of trust. EG Doctor/patient

  Utmost good faith - All material facts must be disclosed. (Lambert v Cooperative)
• Consumer Insurance Act 2012

  • Consumer has a duty to take reasonable care not to make a misrepresentation to the insurer
  • Careless representation: insurer cannot avoid the contract, but can make a reduction
  • Deliberate or reckless: Insurer can avoid the contract and refuse all claims (usually without having to return the premiums that have been paid)
• Untrue statement

  • (Fletcher v Krell)
  • Certain types of contract have stricter requirements
  • upmost good faith
  • Consumer insurance Act 2012
  • Half truth
• The party tells a half truth or says something than later becomes untrue

  (With v O'Flannagan) - Whether there remained an obligation to inform a party to a contract
• Statement must be one of material fact not opinion

  • A statement of material fact
  • Statement of opinion or belief does not amount to a misrepresentation
  • There may be a representation if the matter of the statement does not honestly hold that opinion
  • (Bisset v Wilkinson)
• A statement of material fact - Led a reasonable person to enter into the contract
• Statement of opinion or belief does not amount to be a misrepresentation unless the maker of the statement is an expert or in a better position to know the truth
• There may be a representation if the matter of the statement does not honestly hold that opinion
• (Bisset v Wilkinson) - Gave an opinion and it was not of specialist knowledge
• Must be made by a party to the contract or their agent

  Not liable for statements made by other people unless they are your agent

  So would not be liable if someone else makes a misrepresentation in a review
• Induces the other party to enter the contract

  • Consider the first three and see if they are there
  • (Regrave v Hurd)
  • (Attwood v Small)
  • (Museprime v Adhill properties)
  • Misleading omissions regarding important information
• Induces the other party to enter the contract

  Consider the first three and see if they are there

  • Statement must lead the other party into making the contract
  • Must be important to the party making the contract
  • Party must have relied on the statement rather than their own knowledge or information
• Induces the other party to enter the contract

  (Redgrave v Hurd) - Whether D should have been expected to undertake further research. Into the proposed business by having a look at the accounts.
• Induces the other party to enter the contract

  (Attwood v Small) - Not a misrepresentation if the other party relies on their own judgement of information obtained elsewhere