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Representations (False Representation (Tort of Misrepresentation…
Representations
False Representation
Tort of Misrepresentation
VITIATING FACTOR [VOIDABLE]
Elements
induce the other party to enter contract
other party relied on it
False statement of FACT not opinion
Types of misrepresentation
Negligent
Misrepresentation made in breach of duty of care
Innocent
Statement made genuinely believing it to be true
Fraudulent
False statement made knowingly, without believing or caring in its truth. (Not easy to prove, go with Negligence if unsure)
Derry v Peek (1889)
Remedies
All 3 VOIDABLE,
Negligent
sue for damages under tort of negligence
Innocent
Can't sue for damages
Fraudulent
sue for damages under tort of deceit
Refer to ACL
Words used before formation of contract
Representation or term?
Writing
Term
Verbal
Ascertained from words and conduct and context
[Oscar Chess Ltd v Williams (1957)]
Factors
Reliance on special skills/knowledge
Cause the party to enter contract?
Time elapsed between statement and formation
[Handbury v Nolan (1977)]
If statement was conflicted by term
Parol Evidence Rule
Written term takes precedence over verbal ONLY if there is conflict
Van Den Esschert v Chappell (1960)
Importance of truth of statement
Words after formation of contract
Not representation or term
True Representation
Representation may be a collateral contract - secondary contract collateral to main contract
De Laselle v Guildford (1901)