Vitiating factors

Created by

Rowan Moss

Cards (27)

What is a vitiating factor? 
Something that makes a contract void or voidable
What is the first way to find a misrepresentation?
A false statement
What case showed that a statement could be anything that would influence the others decision?
Spice girls ltd
What does the case of Fletcher v Krell say?
There is no obligation on a person wishing to enter a contract to make any statement about what is being offered
What does the case of ‘with v O’flanagan‘ say? 
Even if a statement was initially true, if it becomes false before the contract is made, it can be classed as a misrepresentation
What does material fact suggest?
the misrepresentation must be of a material fact
the material must be a statement of fact
What does the case of Bisset v Wilkinson say? 
Statement of opinion
An opinion is not fact
If an opinion proves to be false this is not a misrepresentation
What is a statement of intention?
A promise to do something in the future is generally not one of fact
What does Attwood v Small say?
The statement must lead the other into the contract
The person making the contact must have relied on the statement rather than their own judgment or other information
What does Redgrave v Hurd say?
It does not matter if the victim could have discovered the truth by taking reasonable steps, only that the untrue statement was relied upon
What does section 12 say?
Requires traders to provide certain information to the consumer before the contract becomes binding
A change to any of that information, made before entering the contract, is not effective unless expressly agreed between the consumer and the trader
What does The Consumer Protection Regulations 2014 say?
A misleading omission is where a trader deliberately misses out key information that the consumer might need to make informed decisions about purchasing goods or services
All consumer information must be displayed clearly
When is it considered misleading for A trader?
Omits material information that the average consumer needs to make an informed decision
Hides or provides material information in an unclear or untimely manner
Fails to identify the commercial intent of the commercial practice
What are the three types of misrepresentation?
Innocent misrepresentation
Negligent misrepresentation
Fraudulent misrepresentation
What is innocent misrepresentation?
It is a false statement made honestly, meaning the person making the statement always believed to be true
What are the remedies for innocent misrepresentation?
Rescission and damages
What is negligent misrepresentation?
A false statement made by a person who believed the statement was true but had no reasonable grounds for believing it to be true
What are the remedies for a negligent misrepresentation?
Recession or damages
What is fraudulent misrepresentation?
When a statement is made without belief in the truth, whether done purposely or recklessly
What are the remedies for fraudulent misrepresentation?
Recession or damages
What is rescission? 
putting The parties back into the positions they were in before the contract was made
What is economic duress?
Where someone enters into a contract as a result of financial threats
What case links to economic duress?
Atlas Express v Kafco
What are the tests for economic duress?
Pressure where the practical effect of which is that there is compulsion on, or lack of practical choice for the victim
Pressure which is illegitimate
Pressure which is a significant cause in inducing the claimant to enter the contract
What case links to compulsion?
Universe Tanships
When assessing whether the pressure was illegitimate We need to check:
Did the person claiming to be coerced protest about the pressure?
Did the person have any other available course of action?
Were they independently advised before taking action?
After entering the contract, did they take steps to make It void?
What are the remedies of economic duress?
Where economic duress has been found, this will make a contract voidable
Courts will order restitution of property or money