vitiation: misrepresentation

• What is the general rule regarding conduct and misrepresentation?

  Conduct alone can give rise to misrepresentation
• What did Denning LJ state about misrepresentation?

  Any behavior can mislead if it conveys false impression
• What was the outcome of Curtis v Chemical Cleaning & Dyeing Co. Ltd regarding misrepresentation?

  • Contractor concealed dry rot
  • No words were spoken
  • Concealment implied all was well
  • Resulted in fraudulent misrepresentation
• What was the key issue in Gordon v Sellico (1986)?

  Misrepresentation by conduct after Geri Halliwell left
• What does the general rule state about misrepresentation of law?

  Ignorance of law is no excuse for misrepresentation
• What was the misrepresentation issue in the auction case involving C and NCP?

  C was misled about NCP's tenancy status
• What did the HL refer to in Kleinwort Benson Ltd v Lincoln City Council regarding misrepresentation of law?

  Misrepresentation of law can be actionable
• What is required for a statement to be actionable misrepresentation?

  It must be a false statement of fact
• What is a statement of opinion according to Cheshire, Fifoot and Furmstone?

  A belief based on grounds incapable of proof
• What was the outcome of Bisset v Wilkinson regarding misrepresentation?

  The statement was deemed an opinion, not fact
• How does the position of the statement maker affect the classification of a statement?

  Better knowledge increases likelihood of fact statement
• What was the misrepresentation in Smith v Land and House Property Corp?

  The tenant was in rent arrears, not desirable
• What was the misrepresentation in Esso Petroleum Co Ltd v Mardon?

  Esso made negligent representation about sales figures
• What are the types of misrepresentation?

  1. Fraudulent misrepresentation
  2. Negligent misrepresentation
  3. Innocent misrepresentation
• What is the general rule regarding future conduct in misrepresentation?

  Future conduct statements are not actionable
• What happens if a statement of intention is made but not performed?

  No misrepresentation if prevented from performance
• What was the outcome of Edginton v Fitzmaurice regarding misrepresentation?

  Contract rescinded due to misrepresentation of fact
• What is the doctrine of caveat emptor?

  Let the buyer beware; no duty to disclose
• What was the ruling in Keates v Earl of Cadogan regarding non-disclosure?

  No obligation to inform about property conditions
• What was the outcome of Dimmock v Hallet regarding misrepresentation?

  Stating land was fully let was a misrepresentation
• What is required when a truthful statement becomes misleading?

  There is a duty to correct the misleading statement
• What was the ruling in With v O’Flanagan regarding change in circumstances?

  Buyer could rescind due to undisclosed income drop
• What is a material representation?

  It positively influences a reasonable person's decision
• What must the claimant show regarding materiality in misrepresentation?

  It must relate to a matter influencing judgment
• What is the general rule regarding reliance on false statements?

  Representor intended reliance on the false statement
• What was the outcome of Peek v Gurney regarding reliance on a prospectus?

  No misrepresentation as no intention to induce reliance
• What is misrepresentation in contract law?

  • An unambiguous false statement of fact
  • Made during contractual negotiations
  • Induces the other party to enter the contract
  • Contract is voidable by the misrepresentee
• What is the 'but for' test in misrepresentation?

  Representation must induce entry into the contract
• What was the ruling in Attwood v Small regarding reliance on statements?

  C relied on engineers, not D's statements
• What is required to establish fraudulent misrepresentation?

  Must prove statement was made dishonestly
• What was the outcome of Derry v Peek regarding fraudulent misrepresentation?

  Directors were not liable as they believed statement true
• What is the burden of proof in establishing inducement?

  Claimant must prove material inducement by representations
• What is the presumption of inducement in misrepresentation cases?

  It infers representee was induced by the representation
• How can the presumption of inducement be rebutted?

  By providing evidence against the presumption
• What must the tribunal of fact determine regarding inducement?

  Whether the representee was induced by the representation
• What is the presumption of inducement in contract law?

  It infers the representee was induced by the representor's statement.
• How can the presumption of inducement be rebutted?

  By providing evidence that contradicts the presumption.
• Who has the legal burden of proving inducement/reliance?

  The representee has the legal burden.
• What constitutes a negligent statement?

  A statement believed to be true but made carelessly.
• What are the two types of negligent misrepresentation?

  • Common law negligent misrepresentation
  • Statutory misrepresentation under the Misrepresentation Act 1967