The Regulation On Misleading Omissions Essay

1911 Words Sep 11th, 2016 8 Pages
The regulation on misleading omissions in the 2008 Regulations may be viewed as an innovation of the pre-existing legal system by imposing the duty to disclose the material information .
Under the English traditional law, there has generally no duty in the contracting party to disclose facts, therefore, silence on the material information does not amount to misrepresentation. In Keates v The Earl of Cadogan , inspite of knowing that the plaintiff needed to instantly move in the new house but the defendant’s house was in fact unfit for habitation, the defendant still let this house to the plaintiff and kept silent about the condition of the house; it was held that the owner of the house had no duty to inform the tenant about the condition that the house was inhabitable, hence, the defendant had not made misrepresentation. Nonetheless, the failure to provide material facts in some circumstances might be tantamount to the misrepresentation. It may be in this case where a party deliberately attempts to conceal the information as in Schneider v Heath about the sale of a ship, the court held that although the contract was stipulated in such a way that the purchaser has the obligation to buy the ship 'to be taken with all faults '; it is unable for the vendor to take advantage of that stipulation if her defects were known to him and he by any means prevents the buyer from discovering them, or delivers misleading representation of her state at the time of the sale. As…

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