What will form a misrepresentation?
Must not be:
- A mere commendation – Dimmock v Hallett.
- A statement of opinion – Bisset v Wilkinson.
- A statement of future intentions – Edgington v Fitzmaurice.
- A statement of law.
Silence
Generally not a misrepresentation – Fletcher v Krell.
Exceptions:
- Conduct may amount to a misrepresentation – Schneider v Heath.
- A half-true statement may be a misrepresentation – Dimmock v Hallett.
- A change of circumstances may be a misrepresentation – With v
O’Flanagan. - Where one party is in a position of skill v responsibility – Esso v Mardon.
- A fiduciary relationship may impose a duty to disclose – Hedley Byrne
v Heller. - Contracts uberrimae fidei – Seaman v Fonnereau.
Inducement
The untrue statement must persuade, or induce, the other party into the
contract – Attwood v Small.
Types of misrepresentation
May be fraudulent, according to Derry v Peek (deliberately dishonest),
negligent or wholly innocent. For cases pre-1966, courts were only really
interested in whether misrepresentation was fraudulent or not. Now full
remedies exist for non-fraudulent misrepresentation.
Remedies
Rescission
An equitable remedy which restores the parties to original position unless
barred by:
- Affirmation – Long v Lloyd.
- Third-party rights – White v Garden.
- Restitution impossible – Vigers v Pike.
- Lapse of time – Leaf v International Galleries.
182 Contract law