TOPIC 9: MISREPRESENTATION
LEARNING OUTCOMES
• The definition of misrepresentation, (when opinion or intention will be
actionable)
• The requirements of the different claims to damages for
misrepresentation
• The requirements of the remedy of rescission for misrepresentation
• The comparative advantages of the different remedies available for
misrepresentation
• What are the potential remedies for misrepresentation?
• The limits that are placed upon the exclusion of liability for
misrepresentation.
DEFINITION OF MISREPRESENTATION
MODULE GUIDE/LECTURE NOTES
o An actionable misrepresentation is an unambiguous false statement of
existing fact or law that induced a party to enter into the contract.
o The requirements of misrepresentation:
1. It should be Unambiguous.
2. It should be False.
3. It should be a statement or opinion or conduct.
4. The statement made should be made with regard to fact or Law.
5. The party who heard the statement should have been induced to enter
the contract.
(Less important)
1. Should’ve been made during negotiations.
2. It should be made by one party of the contract to another.
3. It should not become a term of the contract. If it is a term there is no
action under misrepresentation.
, UNAMBIGUOUS
Dimmock v Hallett
He was selling land, saying it was “fertile and improvable”. This statement is
held to be ambiguous. It was not clear. The term improvable was vague.
FALSE
Saying something which does not represent the reality of the contract.
Dimmock v Hallett
There was a house on the land being sold, with a tenant who leased the house.
He said this property has been leased to already paying tenant. A statement
was made that the tenant was a paying tenant.
At the time of the contract, tenants had sent a letter that they are leaving. The
contractor knew this at the time of making the contract. The court then held the
statement was false, categorized as half truth. He withheld part of the true
information, making it false.
Spice girls v Aprilia World
Aprilia world was about to launch a certain bike. On that day they wanted spice
girls to performs. They said the spice girls would perform on that day. Ginger
spice given notice that she is to leave the band. On the day they were to
perform, they knew she was leaving. Was that a false statement when they said
spice girls were going to perform? Does 4 members still constitute spice girls?
Statement was therefore false. (half-truth, not a statement but more like
conduct).
With v O’Flanagan
A doctor wanted to sell their practice to an investor. The investor then asked
him how much he makes from this, he stated roughly 2k pounds an year. Didn’t
mention that he was ill for the past few months, he was sick and the clinic was
closed. Court held that the statement was thereby false.
STATEMENT, OPINION OR CONDUCT
If the seller does not say anything at all, you cannot sue for misrepresentation.
There is no duty on the party to disclose all information about the contract
unless it is a contract of utmost good faith. (Doctor, patient, lawyer, insurance,
etc). Uberrimae fidei.
LEARNING OUTCOMES
• The definition of misrepresentation, (when opinion or intention will be
actionable)
• The requirements of the different claims to damages for
misrepresentation
• The requirements of the remedy of rescission for misrepresentation
• The comparative advantages of the different remedies available for
misrepresentation
• What are the potential remedies for misrepresentation?
• The limits that are placed upon the exclusion of liability for
misrepresentation.
DEFINITION OF MISREPRESENTATION
MODULE GUIDE/LECTURE NOTES
o An actionable misrepresentation is an unambiguous false statement of
existing fact or law that induced a party to enter into the contract.
o The requirements of misrepresentation:
1. It should be Unambiguous.
2. It should be False.
3. It should be a statement or opinion or conduct.
4. The statement made should be made with regard to fact or Law.
5. The party who heard the statement should have been induced to enter
the contract.
(Less important)
1. Should’ve been made during negotiations.
2. It should be made by one party of the contract to another.
3. It should not become a term of the contract. If it is a term there is no
action under misrepresentation.
, UNAMBIGUOUS
Dimmock v Hallett
He was selling land, saying it was “fertile and improvable”. This statement is
held to be ambiguous. It was not clear. The term improvable was vague.
FALSE
Saying something which does not represent the reality of the contract.
Dimmock v Hallett
There was a house on the land being sold, with a tenant who leased the house.
He said this property has been leased to already paying tenant. A statement
was made that the tenant was a paying tenant.
At the time of the contract, tenants had sent a letter that they are leaving. The
contractor knew this at the time of making the contract. The court then held the
statement was false, categorized as half truth. He withheld part of the true
information, making it false.
Spice girls v Aprilia World
Aprilia world was about to launch a certain bike. On that day they wanted spice
girls to performs. They said the spice girls would perform on that day. Ginger
spice given notice that she is to leave the band. On the day they were to
perform, they knew she was leaving. Was that a false statement when they said
spice girls were going to perform? Does 4 members still constitute spice girls?
Statement was therefore false. (half-truth, not a statement but more like
conduct).
With v O’Flanagan
A doctor wanted to sell their practice to an investor. The investor then asked
him how much he makes from this, he stated roughly 2k pounds an year. Didn’t
mention that he was ill for the past few months, he was sick and the clinic was
closed. Court held that the statement was thereby false.
STATEMENT, OPINION OR CONDUCT
If the seller does not say anything at all, you cannot sue for misrepresentation.
There is no duty on the party to disclose all information about the contract
unless it is a contract of utmost good faith. (Doctor, patient, lawyer, insurance,
etc). Uberrimae fidei.
