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Contract: Misrepresentation and Economic Duress

Silence, half-truths and changing circumstances

  • 3 things to know
  • Components 2 and 3

Overview

The general rule that silence says nothing actionable, and the four situations that escape it — half-truths, statements that become false, contracts of utmost good faith, and fiduciary relationships.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

Is silence normally a misrepresentation?

Key term

Why does English law refuse a general duty of disclosure?

Key term

What is a half-truth?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Is silence normally a misrepresentation?

    Model answer

    Silence is normally not a misrepresentation, because there is no general duty of disclosure. Fletcher v Krell (1873) refused a remedy where a governess did not reveal her divorce.

  2. 2

    Why does English law refuse a general duty of disclosure?

    Model answer

    A general duty would require every party to reveal information that gives a bargaining advantage. English law leaves each side to make its own enquiries.

  3. 3

    What is a half-truth?

    Model answer

    A half-truth is a literally accurate statement that misleads by leaving out material facts. A half-truth is treated as an actionable misrepresentation.

  4. 4

    Which case illustrates a half-truth?

    Model answer

    Dimmock v Hallett (1866) concerned a statement that farms were let to tenants. The seller failed to add that the tenants had already given notice to quit.

  5. 5

    What happens where a true statement later becomes false?

    Model answer

    The seller in With v O'Flanagan [1936] had to correct a statement about the value of a medical practice. The practice had declined sharply between the statement and the contract.

  6. 6

    What is a contract uberrimae fidei?

    Model answer

    A contract uberrimae fidei is one of the utmost good faith requiring full disclosure. Insurance contracts are the leading example.

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