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Vitiating Factors - Misrepresentation - Coggle Diagram
Vitiating Factors - Misrepresentation
Misrepresentation - Requirements
The statement may be oral, written or by conduct
The statement must be false
The statement must be fact
The statement must have induced the other party to enter the contract
What is misrepresentation?
A statement that was made during negotiations may become a term that is untrue
Will make a contract VOIDABLE
Fraudulent misrepresentation
A party makes a false statement that they do not believe to be true
Remedies - Affirm or rescind, damages in tort or negligence
Negligent misrepresentation
A false statement made by a person who believes that the statement is true
Remedies - Affirm or rescind, damages in tort or negligence, damages under Misrepresentation Act
Innocent misrepresentation
A false statement is made by a person who has a honest and reasonable belief in its truth
Remedies - Affirm or rescind OR damages under Misrepresentation Act
Remedies
Rescission
Sets the contract aside and puts the parties back into the same position they would have been in if the contract was never entered.
Damages
Financial payments made to compensate the innocent party
Fraudulent Misrepresentation - the innocent party is entitled to damages for all the losses suffered.
Negligent misrepresentation - the innocent party is entitled to damages for any loss suffered under the Misrepresentation Act 1967.
Exclusion Clauses
UCTA
CRA