Law Governing Misrepresentation
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What was the court's finding regarding W's opinion on remarriage?

  • It was honestly held at the material time. (correct)
  • It required disclosure to her husband.
  • It was a misrepresentation of fact.
  • It was a fraudulent claim.

    • In the context of representation by conduct, which of the following actions can amount to a representation?

  • Publicly advertising additional services.
  • Making verbal assurances of quality.
  • Nodding or winking to suggest a fact. (correct)
  • Providing inaccurate documentation.

    • What key factor did AW S argue as the basis for their claim in the Spice Girls case?

  • They lacked a signed contract.
  • They were misled by the conduct of the Spice Girls. (correct)
  • They were unaware of GH's departure.
  • The promotional work was not performed.

    • What was the legal status of W's change of mind regarding remarriage?

    <p>It did not need to be communicated to her husband.</p> Signup and view all the answers

    Which of the following statements reflects a typical outcome in cases of misrepresentation?

    <p>Damages may be sought if conduct implies false facts.</p> Signup and view all the answers

    What element did GH fail to disclose to AW S regarding her affiliation with the Spice Girls?

    <p>Her intention to leave the group.</p> Signup and view all the answers

    In legal terms, what is a representation?

    <p>A statement representing a fact or belief intended to influence agreement.</p> Signup and view all the answers

    Under which act did AW S seek damages for misrepresentation?

    <p>The Misrepresentation Act 1967.</p> Signup and view all the answers

    Which type of misrepresentation occurs when a false statement is made knowingly?

    <p>Fraudulent misrepresentation</p> Signup and view all the answers

    Which element is NOT a constituent requirement for a statement to be considered misrepresentation?

    <p>The statement must be a promise</p> Signup and view all the answers

    What is one possible remedy for a misrepresentation that causes harm?

    <p>Rescission plus damages</p> Signup and view all the answers

    In the context of misrepresentation, a statement that is purely a matter of opinion is considered:

    <p>Non-actionable</p> Signup and view all the answers

    What does ‘indemnity pursuant to rescission’ entail?

    <p>Compensation as a result of rescinding a contract</p> Signup and view all the answers

    Which of the following is an essential characteristic of a misrepresentation?

    <p>It must be directly addressed to the party misled</p> Signup and view all the answers

    What type of misrepresentation results from carelessness without intent to deceive?

    <p>Negligent misrepresentation</p> Signup and view all the answers

    Which of the following statements best defines misrepresentation?

    <p>An unambiguous statement that misleads a party regarding a fact</p> Signup and view all the answers

    What legal standard did M invoke against Esso for a false statement concerning petrol station throughput?

    <p>Both breach of warranty and negligent misrepresentation</p> Signup and view all the answers

    In Dimmock v Hallet, what was the court's ruling concerning the auctioneer's description of the land?

    <p>The description was merely puffery, not a misrepresentation</p> Signup and view all the answers

    What was the basis for Esso's liability to M?

    <p>Incorrect warranty about petrol throughput</p> Signup and view all the answers

    What did the court say about double recovery in M's case against Esso?

    <p>There would be no double recovery for similar damages</p> Signup and view all the answers

    Under what circumstance could a misstatement of intention be considered misrepresentation?

    <p>If it was an intentional misstatement of present or future intentions</p> Signup and view all the answers

    In the case of negligent misrepresentation, what aspect was crucial to establishing duty of care?

    <p>The representative's claimed special expertise</p> Signup and view all the answers

    Which of the following is not a characteristic of 'mere puff' in misrepresentation?

    <p>Specific guarantees of a product's performance</p> Signup and view all the answers

    What is the primary implication of Esso's incorrect representation regarding throughput?

    <p>It resulted in M's legal claim for damages</p> Signup and view all the answers

    What must a plaintiff establish in an action of deceit according to Smith v Chadwick?

    <p>Actual fraud and that this fraud was an inducing cause.</p> Signup and view all the answers

    In Edgington v Fitzmaurice, what was required for a plaintiff to prove in relation to misrepresentation?

    <p>The plaintiff sustained damage due to reliance on the misrepresentation.</p> Signup and view all the answers

    What is the nature of the presumption regarding misrepresentation in fraudulent cases as articulated in Barton v County Nat West?

    <p>It is a rebuttable presumption.</p> Signup and view all the answers

    According to the information provided, how is inducement assessed in terms of misrepresentation?

    <p>It is objectively determined based on reasonable person standards.</p> Signup and view all the answers

    What does a plaintiff need to show concerning the inducement in cases of fraudulent misrepresentation?

    <p>The misrepresentation must materially influence their decision.</p> Signup and view all the answers

    In the case Smith v Chadwick, what aspect did the plaintiff fail to prove regarding the misrepresentation?

    <p>That the misrepresentation influenced his conduct.</p> Signup and view all the answers

    What does the phrase 'sole cause' imply in the context of Edgington v Fitzmaurice?

    <p>The statement must be the only reason for entering the contract.</p> Signup and view all the answers

    In Museprime Properties Ltd v Adhill Properties Ltd, what burden is placed on the representor concerning the presumption of inducement?

    <p>To show that misrepresentation did not influence the representee.</p> Signup and view all the answers

    What was determined regarding the duty of diligence in discovering a misrepresentation?

    <p>A party is not under a duty of diligence to discover the truth.</p> Signup and view all the answers

    How did the ruling in Kleinwort Benson Ltd v Lincoln City Council affect misrepresentation?

    <p>It established that both mistakes of fact and law can vitiate a contract.</p> Signup and view all the answers

    In the Pankhania v London Borough of Hackney case, what was the nature of the misstatement?

    <p>The property was incorrectly described as being sold under a terminable license.</p> Signup and view all the answers

    What was the outcome for the claimants in the Pankhania case?

    <p>The contract was rescinded due to misrepresentation.</p> Signup and view all the answers

    Which of the following statements represents the legal stance on false representation?

    <p>False representation can invalidate a contract regardless of negligence.</p> Signup and view all the answers

    Which scenario would NOT constitute misrepresentation?

    <p>A buyer fails to read the purchase agreement carefully.</p> Signup and view all the answers

    What principle can be inferred regarding the reliance on misrepresentation?

    <p>Reliance must be reasonable for the misrepresentation to be actionable.</p> Signup and view all the answers

    In legal terms, what distinguishes a misstatement of law from a misstatement of fact?

    <p>There is no legal distinction; both can lead to misrepresentation.</p> Signup and view all the answers

    Study Notes

    Law Governing Misrepresentation

    • Misrepresentation is governed by contract law, tort law, and the law of restitution.

    Types of Misrepresentation

    • There are three types of misrepresentation: fraudulent, negligent, and innocent.

    Remedies for Misrepresentation

    • Available to the innocent party include rescission of the contract, setting up misrepresentation as a defense, rescission plus damages (in tort for negligent and fraudulent misrepresentation), and indemnity pursuant to rescission.

    Constituent Elements of Misrepresentation

    • The representation must be unambiguous and false.
    • The representation must relate to a fact or law, and not a promise, an opinion, a mere "puff," a statement of intention, or a mere failure to disclose certain facts. There is generally no duty to disclose.
    • The representation must be expressed orally or in writing or by conduct. Silence does not necessarily amount to misrepresentation.
    • The representation must be addressed to the party misled either directly or indirectly with the intention, knowledge, or notice (actual or constructive) that a third party will convey the representation to the party misled.
    • The representation must induce the party misled to enter into the contract. There must be a causal connection between the misrepresentation and the entry into the contract. The misrepresentation need not be the only inducement, but it must be "an" inducement.

    Case Example

    • In the case of Esso Petroleum Co. Ltd v Mardon, Esso was found liable for damages for breach of contract and negligent misrepresentation when its representative's statement regarding the potential throughput of a petrol station turned out to be wrong.

    2.3 Fact, not Puff

    • In the case of Dimmock v Hallett (1866), the court held that a flourishing description of land as "fertile and improvable," was a mere puff and not actionable misrepresentation.

    2.4 Fact, not Statement of Intention

    • A statement of intention made genuinely when made cannot constitute misrepresentation.
    • However, an intentional misstatement of present or future intentions may amount to misrepresentation.
    • In the case of Edgington v Fitzmaurice (1885), the court held that W's stated intention not to remarry was not a representation of fact, and was not fraudulent. She was not obliged to inform her husband of a change of mind after the agreement was concluded.

    2.5 Representation by Conduct

    • Representations can be made by conduct.
    • In the case of Walters v Morgan (1861), the court held that “...a nod or a wink, or a shake of the head, or a smile from the vendor intended to influence the purchaser to believe the existence of a non-existent fact, which might influence the price of the subject to be sold…” can amount to a representation.

    Spice Girls Ltd v Aprilia World Service [2002]

    • In this case, the Spice Girls participated in several photoshoots with Aprilia World Service (AWS) before a contract was concluded. One member, GH, had informed other members of the group she would be leaving, but AWS was not informed.
    • The court held that AWS was induced by the misrepresentation made by the Spice Girls' conduct and were entitled to damages for misrepresentation.

    4. Misstatement of Law may amount to Misrepresentation

    • English law previously held that only misstatements of fact could amount to a misrepresentation.
    • The case of Kleinwort Benson Ltd v Lincoln City Council introduced a new principle that there was no difference between mistake of fact or mistake of law when it came to rendering a contract void.
    • Pankhania v London Borough of Hackney extended this principle to misrepresentation.

    Pankhania v London Borough of Hackney

    • In this case, the particulars of sale at auction negligently described the property as being sold subject to a “licence” terminable by 3 months’ notice.
    • In reality, what was described as a “licence” was actually a statutory protected tenancy.
    • The court held that the contract should be rescinded.

    Smith v Chadwick

    • The court in this case held that the plaintiff must establish actual fraud, and that this fraud must be an inducing cause to the contract.
    • The plaintiff had not sufficiently proved that the misrepresentation influenced him because the statement was ambiguous.

    Edgington v Fitzmaurice

    • The court in this case held that the misrepresentation need not be the only inducement to the entry into the contract, but it must be a material contribution to the decision.

    Presumption of Inducement

    • There is a rebuttable presumption that a fraudulent misrepresentation did induce entry into the contract. -In the case of Barton v County Nat West, the court held that the presumption is one of fact and can be rebutted.

    Museprime Properties Ltd v Adhill Properties Ltd

    • The court in this case held that the test for inducement is objective. If a reasonable person would be induced to enter into the contract by the misrepresentation, then it is presumed that the representee relied on it. The burden of proof lies on the representor to show that the representee did not rely on the misrepresentation.

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    Misrepresentation - English Law PDF

    Description

    This quiz covers the essential aspects of misrepresentation within contract law, including its types, remedies, and constituent elements. Understand the intricate distinctions between fraudulent, negligent, and innocent misrepresentation and the legal implications for the innocent party. Equip yourself with knowledge about how misrepresentation influences contracts and legal outcomes.

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