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Misrepresentation (an untrue statement of fact made by one of the parties…
Misrepresentation
an untrue statement of fact made by one of the parties which induced the other party to enter into a contract
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Statement does not need to be made in word, can be nods, smiles, gestures, course of conduct Spice Girls v Aprilia
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if the maker of the statement is an expert, or has a particular skill or knowledge, it is more likely that the statement will be regarded as a fact rather than an opinion
- Bisset v Wilkinson - an opinion
- Hummingbird Motors v Hobbs - an opinion
- Smith v Land and House Property Construction - fact
- Esso Petroleum Co Ltd v Mardon - fact
the law allows sellers of products latitude to make claims about their goods, provided:
*they are making a generalised claim about the product which does not say anything specific
they are not making a claim that no reasonable man would ever believe, and which is just an advertising stunt*
normally a statement as to someone's future intention is not regarded as a statement of fact as a person is entitled to change this mind.
It would be a misrepresentation if the maker knew that his promise would not be carried out (Edgington v Fitzmaurice
the statement must be made by one party to the contract to the other, before the contract, with the intention of inducing the other party to enter into the contract
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the statement must cause the innocent party to make the contract
- except - no reliance made on the statement Jeb Fastners Ltd v Marks Bloom & Co
- never knew of its existence
- if the buyer was misled, he can still sue even though he could have found out the trust - Redgrave v Hurd
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Silence
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Exceptions
- the relationship is one of good faith (solicitor/client)
- contracts of utmost faith (contract of insurance) where non-declaration of a material fact can make the contract void
- contract for the sale of land - vendor must disclose defects in the title. Under no duty to disclose defects to the property unless specifically asked.
- the contract for purchase of company shares - prospectus inviting to buy the shares must disclose as per the CA2006.
- where a half-truth is offered
- there has been a change in circumstances between the initial discussions and the signing of the contract and which is not disclosed to the innocent party. With v O'Flanagan