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misrepresentation cases
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Cards (81)
What are the types of misrepresentation mentioned?
Statement of facts
,
statement of law
,
opinion
, future intention, silence/half truth
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What is the significance of Curtis v Chemical Cleaning & Dyeing Co. Ltd?
Claimant took a dress for cleaning
Assistant misrepresented
liability exclusion
Court invalidated
exclusion clause
Claimant
misled
and did not consent
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What did Lord Denning LJ state about misrepresentation?
Any behavior can mislead another
party
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How can a misrepresentation affect an exclusion clause?
It can render the clause
unenforceable
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What was the outcome of Spice Girls Ltd v Aprilia World Services BV?
Spice Girls participated in promotions
Knew Geri Halliwell would leave
Created
misleading
impression of group unity
Court held it was
misrepresentation
by
conduct
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What constitutes fraudulent misrepresentation by conduct in Gordon v Selico?
Seller concealed
dry rot
in property
Misled purchaser about true condition
Court ruled it was intended to
deceive
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What is actionable misrepresentation of law as seen in Pankhania v LB Hackney?
Misrepresentation about
tenant's status
Induced
claimant
to enter
contract
Court rejected old
rule against legal misrepresentation
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What is the significance of a misrepresentation of legal rights?
It can be
actionable
if
false
and relied upon
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What was the ruling in Bisset v Wilkinson regarding opinion statements?
Seller's opinion on sheep capacity
Not actionable as
misrepresentation
Buyer knew
land's history
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What was the outcome of Smith v Land and House Property Corp?
Seller described tenant as desirable
Tenant was financially unstable
Court ruled it was
actionable misrepresentation
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What did Esso Petroleum Co Ltd v Mardon establish about statements of opinion?
Forecast by Esso was
negligent misrepresentation
Esso had special expertise
Induced Mardon to enter contract
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What is the significance of Edgington v Fitzmaurice regarding future intentions?
Directors misrepresented intentions in prospectus
Court ruled it was actionable
misrepresentation
Established precedent for intentions as existing facts
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What does Dimmock v Hallet illustrate about misleading statements?
Seller's statements were technically true
Omitted crucial information about tenants
Court ruled it was a
material misrepresentation
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What was the ruling in With v O’Flanagan regarding changing circumstances?
Seller failed to update buyer on income drop
Court held it was
misrepresentation
Duty to correct false statements before
contract conclusion
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What does Keates v Earl of Cadogan say about silence in misrepresentation?
Mere silence is not misrepresentation
Duty to speak exists in certain contracts
Partial truths
can lead to misrepresentation
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What was the stated income of the medical practice?
£2,000
per year
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What happened to the medical practice's income after the statement was made?
It dropped
significantly
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Did the seller inform the buyer about the income change before finalizing the contract?
No
, the seller
did not
inform the buyer
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What did the court hold regarding the seller's failure to update the buyer?
It amounted to
misrepresentation
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Can a true representation become a misrepresentation before a contract is concluded?
Yes, if it becomes
false
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What is the duty of a seller regarding representations made?
To
correct
false
representations
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What was the case of Keates v Earl of Cadogan about?
A property leased that was
uninhabitable
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What did the court rule in Keates v Earl of Cadogan regarding mere silence?
Mere silence is not
misrepresentation
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When is there a duty to speak in contracts?
In contracts of
utmost good faith
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What is required for silence to amount to misrepresentation?
A duty to speak must
exist
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What was the outcome of Peek v Gurney regarding liability?
The directors were not
liable
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Why were the directors not liable in Peek v Gurney?
The
misrepresentation
was not made
directly
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What must be proven for liability in fraudulent misrepresentation?
A false representation made
knowingly
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What must the claimant do in cases of fraudulent misrepresentation?
They must have
relied
on it directly
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What must the misrepresentation cause for liability to arise?
Actual loss
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What was the outcome of Attwood v Small regarding rescission?
Rescission
was
not
allowed
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Why did the House of Lords refuse rescission in Attwood v Small?
The buyer relied on
independent experts
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What can a party not claim if they did not rely on a representation?
They cannot claim to be
misled
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What was the outcome of Redgrave v Hurd regarding the contract?
The contract was
rescinded
in favor of Hurd
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What did the court find in Redgrave v Hurd about reliance on representations?
Hurd was
entitled
to rely on the
representation
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What principle was established regarding misrepresentation in Redgrave v Hurd?
A person is
entitled
to rely on a representation
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What is required for a misled party to rescind a contract?
They must have relied on the
false statement
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What is required for fraudulent misrepresentation according to Derry v Peek?
Proof that a
false representation
was made
knowingly
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What did the House of Lords rule in Derry v Peek regarding the statement made?
The statement was made in honest belief
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What is the burden of proof in cases of fraudulent misrepresentation?
The
representee
bears the burden of proving inducement
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