Misrepresentation - undergrad law

Misrepresentation

It is defined as a false representation of fact or law made by the defendant (D) to the claimant (C) before the contract is agreed, which induces C to enter into the contract. 

Types of vitating factors

The vitiating factors include misrepresentation, mistake, and duress. (Vitiate = “to spoil”) 

Legislation that provides remedies for misrep

The Misrepresentation Act 1967

What is the role of pre-contractual statements in a written contract for sale? 

Important pre-contractual statements, beliefs, or commitments may not be included as contractual clauses, even though they could have influenced the agreement. 

What must be satisfied for a misrepresentation to be actionable? 

The misrepresentation must (a) be a false statement of fact or law, (b) be made by the defendant and addressed to the claimant, and (c) induce the claimant to enter the contract. 

What does the “Stage 1 – Actionability” include in misrepresentation claims? 

Evaluating pre-contractual representations, determining if a false statement (of fact or law) was made, and checking if it induced the claimant to enter into the contract. 

What are the two requirements regarding who must make and receive the misrepresentation? 

The representation must be made by the defendant and it must be addressed specifically to the claimant or to a class of persons of which the claimant is a member. 

In Dimmock v Hallett (1866), how were the statements regarding “fertile and improvable” land treated? 

Turner LJ regarded the description as mere flourish by the auctioneer, and Cairns LJ noted it was too indefinite to qualify as a misrepresentation. 

According to Kleinwort Benson Ltd v Malaysia Mining Corp, what is the nature of a representation? 

A representation is a statement asserting a given state of affairs—it is not an undertaking to do or not do something. 

How did the Aprilia ltd v Spice Girls case illustrate misrepresentation? 

The court held that the continued conduct of the Spice Girls—attending photoshoots to promote the scooters—amounted to a statement of fact. 

What did Gordon v Selico Co establish about the contractor’s actions? 

The contractor’s concealment of dry rot rather than fixing it was considered a false representation, resulting in liability for fraudulent misrepresentation. 

What type of statement can fall under misrepresentation according to Pankhania v Hackney LBC? 

A statement about a law can count as a misrepresentation. 

What four nuances must be considered when testing if a statement is one of ‘fact’? 

1. Conduct (including hiding defects) 

2. Statements of opinion 

3. Statements of intention 

4. Silence 

What general rule regarding statements of opinion was established in Bisset v Wilkinson?

The court ruled that you cannot sue for a wrong opinion when both parties are unknowledgeable and there is a genuine misassessment.

Under what circumstances is a statement of opinion treated as containing a material fact, based on Smith v Land & House Property Corp?

When one party, having superior knowledge of the facts, implies or states that their opinion is based on facts not equally well known by both sides. 

What was the key issue in Esso Petroleum v Mardon regarding misrepresentation? 

A forecast made negligently by the plaintiff's representative, based on expertise in the petrol trade, induced the defendant to enter the contract, leading to liability for breach of warranty. 

What does Beattie v Ebury illustrate about statements of future intention? 

A statement of future intention is not a statement of fact since it cannot be true or false at the time it is made. 

How does Edgington v Fitzmaurice provide an exception to the general rule on statements of intention? 

It states that a dishonest statement of future intention can be considered a statement of fact—“the state of a man’s mind is as much a fact as the state of his digestion.” 

What is the general rule regarding silence in the context of misrepresentation? 

Silence is generally not considered a statement, and there is no duty in English law to disclose information. 

How did Dimmock v Hallett address the issue of silence or partial disclosure? 

The court accepted that saying one thing while excluding another material fact (a half-truth) could be seen as a misrepresentation despite overall silence. 

What principle regarding continuing representations is demonstrated in With v O’Flanagan? 

A party that continues to represent facts—such as a doctor not disclosing a significant drop in revenues—may be held liable for misrepresentation if the information is material.

Which category of contracts is highlighted for its requirement of utmost good faith regarding disclosures?

Contracts uberrimae fidei, such as insurance contracts.

What is the “presumption of inducement” in the context of misrepresentation? 

If a false representation would have induced a reasonable person to enter the contract, then inducement is presumed, shifting the burden of proof onto the defendant.

Under the non-inducement presumption, what must the representee demonstrate? 

The representee must show that they were actually induced to enter the contract, as a reasonable person would not have been induced by the representation. 

According to additional notes, what “part” must a misrepresentation play in inducing the claimant?

It must play a “real and substantial part” in inducing the decision to enter the contract, as evidenced by JEB Fasteners v Marks Bloom. 

Is misrepresentation required to be the sole factor in inducing a contract? 

No; it does not need to be the only inducement. Other factors may contribute, as noted in Edgington v Fitzmaurice.

What does Horsfall v Thomas reveal about reliance and concealment in sales? 

Even when a seller conceals a fault (plugging up a fault on a gun), if the buyer does not rely on the seller’s opinion about the item’s soundness, then no inducement occurs—the timing of the concealment was key. 

How does Attwood v Small (1838) illustrate the importance of reliance in misrepresentation claims? 

The purchaser relied on an expert agent’s report rather than the seller’s statement, so there was no inducement based on the seller’s misrepresentation. 

What key point did Redgrave v Hurd establish regarding the purchaser’s duty? 

It confirmed that there is no general duty for the purchaser to check the truth of the information; the purchaser cannot later claim ignorance if they had the means to verify the statement but chose not to. 

What is the overall effect of excluding pre-contractual statements from a written contract in relation to misrepresentation? 

Excluding such statements highlights that significant pre-contractual communications (beliefs, commitments, or representations) might be deemed misleading or misrepresentations if they are not formally incorporated into the contractual terms.