August 28, 2025
Derry v Peek [1889] UKHL 1 (01 July 1889)
Company directors issued a prospectus stating they had the right to use steam power, honestly believing consent was a formality. This proved false. The House of Lords held that for an action in deceit, fraudulent intent must be proven, not mere carelessness. Facts The directors of the Plymouth, Devonport and District Tramways Company issued a prospectus to attract public investment. The prospectus stated that under its special Act, the company had the right to use steam or mechanical power for its trams, which would be a significant advantage over competitors using horse-drawn trams. In reality, the Act stipulated that the
