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114 Chapter 4Misrepresentation, mistake, duress and illegality

misrepresentation How a representation becomes a

Bisset vWilkinson (1927) (Privy Council)

The claimant bought a farm because the defendant told him that the farm would support

2,000 sheep. The claimant knew that the farm had never before been used for sheep farming.

In fact the farm, no matter how well managed, could not support anything like 2,000 sheep.

HeldThe statement was just an opinion and could not therefore amount to a

misrepresentation.

Figure 4.2 How a representation becomes a misrepresentation

A breached term always gives the injured party the right to a remedy for breach of contract.

An untrue representation will lead to a remedy if it amounts to an actionable misrepresen-

tation. If, however, the representation does not fit within the definition of an actionable

misrepresentation, then it will be a mere representation and no remedy will be available.

Definition of a misrepresentation

An actionable misrepresentation is an untrue statement of fact which induced the other

party to make the contract.

The statement must be one of fact

Statements of mere opinion are not capable of being misrepresentations.