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.

Law books in a law library

Cranford Community College v Cranford College Ltd [2014] EWHC 2999 (IPEC) (19 September 2014)

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)...

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Mountford v Scott [1974] EWCA Civ 10 (17 October 1974)

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...

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Government of Zanzibar v British Aerospace (Lancaster House) Ltd [2000] EWHC 221 (Comm) (26 January 2000)

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...

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Bisset v Wilkinson [1926] UKPC 1 (20 July 1926)

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...

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Attwood v Small [1838] UKHL J60 (March 1838)

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...