Misrepresentation CASES
In English law, misrepresentation occurs when one party makes a false statement of fact, inducing another to enter into a contract, which can render the contract voidable.
Definition and Principles
Misrepresentation must be a false, factual statement made by one party to another, relied upon when entering into the contract. Opinions or predictions typically do not constitute misrepresentation unless stated falsely as facts.
Types of Misrepresentation
Remedies
Affected parties may seek remedies such as:
- Rescission: Cancellation of the contract.
- Damages: Compensation, primarily for fraudulent or negligent misrepresentations.
Practical Importance
Understanding misrepresentation encourages honesty and transparency in negotiations, ensuring contractual fairness and informed consent.
Home » Misrepresentation
A state secondary school brought a passing off action against a nearby private educational establishment using the similar name 'Cranford College'. The court dismissed the claim, finding that the descriptive name had not acquired sufficient secondary meaning to establish goodwill, and no actionable misrepresentation had occurred. Facts The Claimant (CCC)...
A property developer purchased land from a council for over £5 million. After completion, a private sewer easement was discovered crossing the site. The developer sought to rescind the contract on grounds of misrepresentation and mistake. The Court of Appeal held that contractual conditions allocated the risk of unknown easements...
A motor dealer misrepresented the deposit amount to a finance company to secure a hire-purchase agreement. The customer later dishonestly sold the car and defaulted. The Court of Appeal held that damages under s.2(1) Misrepresentation Act 1967 are assessed as for fraudulent misrepresentation, allowing recovery of all direct losses even...
A motor bicycle was sold through a chain of buyers, with each seller stating it was a 1941-1942 model based on the registration book, which was false. The Court of Appeal held that such statements were mere representations, not warranties, and the final seller was not liable in damages. Facts...
A motor dealer bought a Morris car described as a 1948 model based on the registration book, but it was actually a 1939 model. The Court of Appeal held the seller's statement was an innocent misrepresentation, not a contractual warranty, as neither party had special knowledge of the car's true...
The defendant granted the plaintiffs an option to purchase his house for £10,000, receiving £1 consideration. He later attempted to withdraw but the plaintiffs exercised the option. The Court of Appeal upheld specific performance, confirming that nominal consideration supports a valid irrevocable option, and the resulting contract was enforceable. Facts...
Ogdens hired barges from Howards for excavation work after being told the barges could carry 1600 tonnes. The actual capacity was only about 1055 tonnes. The Court of Appeal held Howards liable under section 2(1) of the Misrepresentation Act 1967 as they failed to prove reasonable grounds for their belief...
Buckleton purchased shares in a rubber company after a telephone conversation with the defendants' agent. When the company proved not to be primarily a rubber company, he claimed damages for breach of warranty. The House of Lords held no warranty existed, establishing that representations only become warranties if intended as...
The Government of Zanzibar purchased an executive jet aircraft from British Aerospace, alleging misrepresentations about its airworthiness and reliability. The court dismissed the main action for delay and abuse of process, holding that issuing writs at limitation's end without readiness to proceed was impermissible. The judgment clarified that damages under...
Mr Bentley purchased a Bentley car from a dealer who represented it had done only 20,000 miles since being fitted with a replacement engine and gearbox. This statement was false. The Court of Appeal held this was a warranty, not merely an innocent misrepresentation, because the dealer was in a...
Bisset sold land to Wilkinson for sheep farming, stating his opinion that the land could carry 2,000 sheep. The buyers sought rescission for misrepresentation when farming proved unsuccessful. The Privy Council held that the statement was honestly held opinion, not misrepresentation of fact, since neither party knew the land's actual...
Facts Mr. and Mrs. O’Brien were joint owners of their matrimonial home. Mr. O’Brien’s company, in which Mrs. O’Brien had no interest, required an increased overdraft facility from Barclays Bank. The bank agreed, on the condition that it was secured by a second charge over the O’Briens’ home. Mr. O’Brien...
Facts The appellants, Waterlow & Sons Ltd, were a firm of printers who held a contract with the respondent, the Bank of Portugal, for the exclusive printing of 500-escudo banknotes. A criminal mastermind, Marang, pretending to be an authorised agent of the Bank, deceived Waterlow into printing 580,000 additional banknotes...
Facts The appellant, Mr. Attwood, agreed to sell his extensive ironworks and coal mines at Corngreaves, Staffordshire, to the respondents, John Small and others, for the sum of £600,000. During the negotiations, Attwood made various statements and representations concerning the property’s costs, output, and earning capacity. The prospective purchasers (the...