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9 Cards in this Set
- Front
- Back
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What is a misrepresentation? |
A false statement of law or fact which induces the party to a contract . |
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What would and would not amount to a false statement of of fact ? |
The statement must be more than ♢sales talk-Dimmock v Hallett ♢opinion -Beset v Wilkinson ▪exception statement maker has. greater knowledge -Smith v House and land ♢future intention- Edgington v Fizmaunce ♢silence usually not misrepresentation but in the case of -Spice Girls v Aprilia world services -Conduct ♢change in circumstances- White v O'Flanagan |
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What are the requirements for inducement ?
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♢Must be real and substantial -Dudounana v Simms ♢must be reliance on the statement made - Attwood v Small |
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What are the types of misrepresentation? |
♢Fraudulent - Derry v Peek ♢negligent mistatement Hedly Byrne v Heller ♢negligent misrepresentation - section 2 (1) misrepresentation Act 1967 ♢innocent misrepresentation |
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What are the differences between the types of misrepresentation? |
•Fraudulent - high burden of proof rest with the claimant •Negligent misrepresentation if satisfied the burden shifts to the defendant to show that they had reasonable grounds to believe the statement was true .This is a heavy burden to prove •negligent mistatement -existence of a special relationship •innocent - elements of misrepresentation are proven but statement maker genuinely believed it to be true and does not act negligently under common law or statute . |
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What are the remedies for misrepresentation? |
♢Rescission ♢Damages
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What are the limitations on rescission ? |
Rescission is not an automatic remedy and has many limits ; ♢party affirms the contract - Long v Lloyd ♢Significant lapse in time - Leaf v international galleries ○exception fraud -Salt v Stratston ♢rescission is impossible - Clarke v Dickson ♢Affects the right of a third party . |
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How are damages awarded for misrepresentation? |
Fraudulent -tort of deceit putting the claimant back in the position had the misrepresentation not been made. ♢negligent mistatement - only award for losses that are foreseeable consequence of the misrepresentation. This reduced with contributory negligence . ♢negligent misrepresentation (s.2 (1)) damages are to awarded as that of fraud |
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What remedies are available for innocent misrepresentation? |
S.2 (2) recision Damages may be an alternative to recision but only one can be awarded . |
